The Euro might go for 1.1000 if the US Dollar is under further selling pressure.

EURUSD has continued its advance and soared above 1.0900 early Thursday. Following a negative reversal in the first part of the day on Wednesday, the EURUSD recovered its footing in the American session. Market players responded to the Bank of Canada’s policy decisions in the absence of high-impact US data. The Bank of Canada raised its policy rate by 25 basis points to 4.5%, as predicted, and stated that it expects to keep the rate at this level while analyzing the impact of cumulative rate rises. As a result, the yield on US Treasury bonds fell, putting the US Dollar on the defensive. Later in the day, the US Bureau of Economic Analysis will announce its preliminary estimate of fourth-quarter GDP growth. The market anticipates annualized growth of 2.6%, down from 3.2% growth in the third quarter.

The Pair(EURUSD) remains reasonably calm early Thursday as investors await US data.

investors should avoid placing significant wagers ahead of important US macroeconomic data releases. At this point, markets believe the US Federal Reserve will raise its policy rate by 25 basis points in February and March and then maintain it there, with the CME Group Fed Watch Tool indicating just a 30% possibility of a third 25 basis point boost in May. As a result, markets have already priced in the Fed’s less aggressive hawkish forecast for the short term. A weaker-than-expected GDP figure might put the US Dollar under fresh pressure, at least in the short term. A stronger-than-expected GDP growth in Q4 could prompt investors to second-guess themselves, resulting in a US Dollar comeback.

The weekly Initial Jobless Claims numbers will be released with the December New Home Sales and Durable Goods Orders data on the US economic calendar. Market players, on the other hand, are expected to remain focused on the GDP data.

 Technical Outlook

After testing the lower limit of the ascending regression channel from early January on Wednesday, EURUSD is still trading within it. Interim resistance is aligned at 1.0900 (psychological level, channel midpoint).

Once EURUSD has steadied above that level and confirmed it as support, it will most likely confront resistance around 1.0930 (multi-month high) and 1.0980 (static level, old support) before aiming for 1.10000. (Psychological level).

1.0880 (lower limit of the channel, 20-period Simple Moving Average (SMA)) serves as first support on the downside. If that level is breached, the pair may continue to fall toward 1.0850 (50-period SMA) and the psychological threshold of 1.0800.