• EUR/USD drops below 1.1700 on Wednesday after Tuesday's rejection in the 1.1790 area.
• Eurozone GDP and Industrial Production figures have added pressure on the Euro.
• The US Dollar remains buoyed by waning hopes of further Fed rate cuts.

The Euro (EUR) extends losses against the Dollar (USD) for the second consecutive day on Wednesday, trading below 1.1700 at the time of writing after rejection at 1.1790 on Tuesday. Eurozone Gross Domestic Product (GDP) and, above all, Industrial Production figures have failed to meet expectations, increasing bearish pressure on the Euro.

The second estimate of the Eurozone’s GDP confirmed that the economy grew at a meager 0.1% pace in the first three months of the year, and 0.8% in the previous 12 months, down from 0.2% and 1.2%, respectively, in Q4.

Beyond that, Eurozone Industrial Production figures have shown a 0.2% growth in March, below the 0.3% market forecast, and February’s figures have been revised down to 0.2% from the previously estimated 0.4% rise. Year-on-year, factory output has accelerated its contraction, to -2.1% in March, from -0.8% in the previous month.

The US Dollar, on the other hand, remains buoyed by the inflationary surprise revealed by April’s Consumer Price Index (CPI) figures, released on Tuesday. A nearly three-year high year-on-year CPI rate has crushed hopes of further Federal Reserve (Fed) rate cuts in the foreseeable future, boosting US Treasury yields and the Greenback with them.

Beyond that, the stalemate in the Middle East conflict keeps providing support to the safe-haven USD, as US President Donald Trump heads to China to seek support from President Xi Jinping to untie the knot of Iran’s war. 

Technical Analysis: Approaching key support below 1.1675

EUR/USD shows a growing bearish tone in 4-hour charts, with momentum indicators reinforcing the downside bias. The Relative Strength Index (RSI) is hovering near oversold territory around 33, and the Moving Average Convergence Divergence (MACD) histogram is slipping further into negative territory, suggesting persistent selling pressure.

Bears have gained momentum after breaching weekly lows near 1.1720 and are heading to a key support area between 1.1645 and 1.1675, which contained downside attempts several times in April. A confirmation below those levels would bring April's bottom, near 1.1510, into focus.

On the topside, the intra-day highs, near 1.1740, are likely to offer resistance to a potential bullish reaction, ahead of the May 6, 8, and 11 highs above 1.1790 and the April 17 high, at 1.1851.

(The technical analysis of this story was written with the help of an AI tool.)