The common currency extended declines on the back of a stronger greenback. The euro fell to 1.1032 before closing the day at 1.1040. This marked a new two-year low in the currency pair. Earlier in the day, flash GDP estimates for the second quarter showed that the EU economy grew just 0.2%, down from 0.4% in the first quarter.
EURUSD at Risk of Further Declines
The downside breakout in the currency pair has sent the EURUSD to break past the trend line as well. In the near term, we could expect to see some consolidation, but further declines are expected. An unfilled gap from April 2017 near 1.0725 remains the next major support to the downside.
