EUR/USD finds support at 1.24 ahead of US growth and inflation data on Wednesday

• The US PCE inflation data and Gross Domestic Product will be released Wednesday at 12:30 GMT. 
• Worst-than-expected data from the Eurozone weighs on the EUR/USD.

The EUR/USD is trading at around 1.2413, down 0.24% on Tuesday so far as earlier in the European session, the ECB member Liikanen said that patience is needed in removing stimulus in contradiction with his fellow ECB member Vasiliauskas. The dovish comment was exacerbated by the European Commission’s Economic Sentiment Indicator for March in the Eurozone which came below expectated at 112.3 while analysts were forecasting 113.4; previous month reading was at 114.2. 

The EUR/USD is also being affected by a boost in the USD as tensions between the US and China over tariffs seem to cool off and risk appetite is coming back as Wall Street have seen a rebound since Monday.

Investors will shift their attention to the US Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) macroeconomic indicators to gauge if the US economy is on the right track in term of growth, which could, in turn, justify the US rate hikes which are already mainly price in, according to analysts at Swissquote.  

EUR/USD daily chart

The Euro bulls are taking a pause after the four days advance since the “dovish rate hike” last Wednesday from the FOMC as mentioned by some analysts. The market is having a hard time to reach the 1.25 handle, which will likely act as a strong resistance to overcome from a technical perspective as it coincides also with the high of the year seen a little above at 1.2556. 

EURUSD 4-hour chart

The bears orchestrated a sharp selloff at the 1.2480 level and the buyers are trying to support the market at 1.24. If the buyers fail to support the market the next support is seen at 1.2350 with the 50, 100 and 200-period simple moving averages converging just below the level; a failure should bring the market to 1.2990 previous swing low and demand level. To the upside, the bulls will need to overtake resistance seen at 1.2470 last swing high and the 1.2550 high established on February 16.