The EUR/USD pair failed to capitalize on the previous session's goodish rebound from the post-ECB swing lows and met with some fresh supply on Thursday. The pair snapped three consecutive days of the winning streak and was pressurized by a goodish US Dollar rebound from near two-week lows, which got an additional boost from robust US economic data, and a subsequent rise in the US Treasury yields.
Data released on Thursday showed initial weekly jobless claims fell below 200K mark for the first time since 1969 and pointed to the underlying strength in the labor market. Adding to this, the headline PPI accelerated to 2.2% y/y rate in March while Core CPI - stripping out volatile food and energy prices, came in at 2.4% y/y. Stronger data lifted yields on the benchmark 10-year US government bond back to 2.5% mark and forced traders to cover their short USD positions.
However, the fact that the minutes of the latest FOMC meeting minutes reaffirmed the central bank's patient stance, the attempted USD recovery lacked any strong conviction and helped limit the further downside for the major. The pair settled near the lower end of its daily trading range, around mid-1.1200s, but managed to catch some aggressive bid and rallied to near three-week lows, closer to the 1.1300 round figure mark during the Asian session on Friday.
Today's economic docket features the release of Euro-zone industrial production data for February and Prelim UoM Consumer Sentiment from the US, which will be looked upon for some short-term trading opportunities on the last trading day of the week.
From a technical perspective, the pair managed to bounce off a support marked by the lower end of a short-term ascending trend-channel formation on hourly charts and now seems to have found acceptance above 38.2% Fibonacci retracement level of the 1.1448-1.1184 recent downfall. With technical indicators on the mentioned chart holding in the bullish territory, the positive momentum seems more likely to get extended, further beyond the 1.1300 mark, towards testing a confluence resistance near the 1.1315-20 region - comprising of the trend-channel resistance and 50% Fibonacci retracement level.
On the flip side, any meaningful pullback might continue to find some support near the 1.1250-45 region, which if broken might negate prospects for any further up-move and turn the pair vulnerable to aim back towards challenging the 1.1200 round figure mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD holds steady near 1.0650 amid risk reset
EUR/USD is holding onto its recovery mode near 1.0650 in European trading on Friday. A recovery in risk sentiment is helping the pair, as the safe-haven US Dollar pares gains. Earlier today, reports of an Israeli strike inside Iran spooked markets.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD is rebounding toward 1.2450 in early Europe on Friday, having tested 1.2400 after the UK Retail Sales volumes stagnated again in March, The pair recovers in tandem with risk sentiment, as traders take account of the likely Israel's missile strikes on Iran.
Gold price defends gains below $2,400 as geopolitical risks linger
Gold price is trading below $2,400 in European trading on Friday, holding its retreat from a fresh five-day high of $2,418. Despite the pullback, Gold price remains on track to book the fifth weekly gain in a row, supported by lingering Middle East geopolitical risks.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Geopolitics once again take centre stage, as UK Retail Sales wither
Nearly a week to the day when Iran sent drones and missiles into Israel, Israel has retaliated and sent a missile into Iran. The initial reports caused a large uptick in the oil price.