- The pair faded the spike to the 1.2400 neighbourhood earlier in the session.
- The greenback rebounds from lows and test tops near 89.75.
- US Initial Claims, Philly Fed index, Fedspeak next on tap.
The selling pressure is now hurting the single currency and forcing EUR/USD to not only retrace the uptick to the 1.2400 area but also to drop and record fresh daily lows around 1.2360.
EUR/USD looks to US data
The pair keeps the familiar weekly range so far on Thursday, hovering over the 1.2360 region and trading at shouting distance from the area of interim support offered by a cluster of moving averages in the 1.2333/58 band.
Spot came under further pressure in response to the bounce off lows in the greenback, which manages to regain the 89.70 level and above when measured by the US Dollar Index (DXY).
In the meantime, alternating risk appetite trends continue to drive the sentiment around the global markets today, with volatility close to lows above 15.00 and US 10-year yields in 4-week tops in the boundaries of 2.90%.
On the data front, EMU’s Current Account surplus widened at a seasonally adjusted €35.1 billion in February. Across the pond, Initial Claims and the Philly Fed index are due next seconded by speeches by FOMC’s L.Brainard and Cleveland Fed L.Mester.
EUR/USD levels to watch
At the moment, the pair is losing 0.06% at 1.2366 facing immediate support at 1.2300 (low Apr.12) seconded by 1.2214 (low Apr.6) and finally 1.2153 (low Mar.1). On the other hand, a break above 1.2414 (high Apr.17) would target 1.2478 (high Mar.27) en route to 1.2538 (high Jan.25).
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