EUR/USD Forecast: Euro turns south after failing to clear key resistance

• EUR/USD came under bearish pressure and declined toward 1.0800 early Wednesday.
• Cautious market mood could make it difficult for the pair to rebound.
• US economic calendar will feature second estimate of Q4 GDP growth.

After failing to clear 1.0860 resistance on Tuesday, EUR/USD turned south and declined toward 1.0800 early Wednesday. The pair’s technical outlook points to a bearish tilt in the near term. Market participants will pay close attention to the risk perception and the revision to the US growth data.

The broad-based US Dollar (USD) weakness helped EUR/USD push higher in the first half of the day on Tuesday. The mixed action in Wall Street’s main indexes and the resilience of the US Treasury bond yields, however, helped the currency hold its ground and didn’t allow the pair to gather bullish momentum.

The risk-averse market atmosphere, as reflected by retreating US stock index futures, supports the USD midweek and weighs on EUR/USD.