EUR/USD Current price: 1.0760
- United States Initial Jobless Claims unexpectedly jumped to 231K at the beginning of May.
- Market players await clearer clues before compromising with a specific direction.
- EUR/USD bounced from fresh weekly lows but lacks enough momentum.
The EUR/USD pair fell to the lower end of its weekly range, extending the slide by a few pips yet holding above the 1.0700 mark during the European session. The US Dollar benefited from a souring market mood, as reflected by the poor performance of global equities. Wall Street closed mixed on Wednesday, leading to choppy trading and further uncertainty in its Asian and European rivals. As we approach Thursday’s opening, United States (US) indexes trade with a soft tone and aim to start the day without much changes, although near monthly highs.
Financial markets are still seeking a catalyst after acknowledging that central banks will maintain interest rates on hold for longer than previously anticipated. Growth has become less of a concern, with global signs of tepid recovery. Inflation, on the other hand, has decelerated its slide and turned a bit more worrisome, but it is close enough to central banks’ goals to spook the odds for rate hikes.
The European macroeconomic calendar had nothing relevant to offer, as several countries celebrated a bank holiday, Ascension Day. As for the US, the country released Initial Jobless Claims for the week ended May 3, which unexpectedly jumped to 231K, much worse than the 210K anticipated. The USD shed some ground with the news, with EUR/USD recovering to the 1.0760 region.
EUR/USD short-term technical outlook
From a technical point of view, the EUR/USD pair maintains a neutral stance. It had turned positive for the day but lacks momentum enough to confirm a continued advance in the upcoming session. The daily chart shows technical indicators remain directionless within positive levels, which is in line with the ongoing range trading. At the same time, EUR/USD develops below bearish 100 and 200 Simple Moving Averages (SMAs) while a flat 20 SMA provides dynamic support at around 1.0695.
According to the 4-hour chart, EUR/USD is neutral-to-bullish in the near term. The pair recovered above its 100 and 200 SMAs while battling a directionless 20 SMA. Finally, technical indicators have turned firmly higher but remain below their midlines. The pair would need to clear the 1.0810 price zone to actually turn bullish and anticipate another leg north in the near term.
Support levels: 1.0695 1.0660 1.0620
Resistance levels: 1.0810 1.0840 1.0885
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