A fresh wave of greenback selling pressure emerged during mid European session, helping the EUR/USD pair to extend its ongoing recovery move from Wednesday's multi-week lows near 1.0520 region.
Currently trading around 1.0630-25 band, off session peak touched in the past hour, long-dollar unwinding trade extended through European session on Thursday and has been an exclusive driver of the pair's up-move on Thursday. In fact, the key US Dollar Index extended its reversal move from Wednesday's one-month high, touched in the aftermath of upbeat US economic releases, and is now placed at fresh daily lows near 100.75 region, thus supporting the pair's bid tone for the second consecutive day.
In absence of any relevant economic data from the Euro-zone, investors on Thursday will remain focused on the release of ECB monetary policy meeting minutes, due in a short-while from now. Later during NA session, the US economic docket that includes – weekly jobless claims, housing starts, building permits and Philly Fed manufacturing index, would also be looked upon for short-term trading impetus.
Technical levels to watch
Follow through buying interest above session peak resistance near 1.0640 level, leading to a subsequent strength above 1.0655 area, seems to lift the pair back towards reclaiming 1.0700 round figure mark, en-route 1.0715-20 horizontal resistance.
On the downside, 1.0600 handle now becomes immediate support to defend, which if broken seems to drag the pair back towards 1.0575 horizontal support. A subsequent drop below 1.0575 support would negate any near-term bullish bias and turn the pair vulnerable to head back towards 1.0525-20 support ahead of 1.0500 psychological 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 edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.