EUR/USD steadies below 1.0800 ahead of Friday's key data releases


  • EUR/USD looks to post losses for the second straight day on Thursday.
  • Broad-based USD strength keeps bearish pressure on the pair intact.
  • Eurozone and Germany GDP data will be published on Friday.

The EUR/USD pair staged a rebound during the American session but failed to hold above 1.0800. As of writing, the pair was down 0.3% on the day at 1.0783 and was looking to post its lowest daily close in three weeks.

The USD's market valuation on Thursday seems to be the primary driver of EUR/USD's action. Earlier in the day, US President Donald Trump said a strong dollar would be helpful during the recovery phase post-coronavirus. Additionally, the heavy bearish pressure surrounding major European equity indexes allowed the USD to continue to gather strength as a safe-haven.

Meanwhile, in its monthly Economic Bulletin, the ECB said the euro area GDP could contract by 5-12% in 2020 to further weigh on the shared currency.

Focus shift to Friday's key macroeconomic data

In the second half of the day, the data from the US showed that Initial Jobless Claims fell to 2.9 million in the week ending May 8th but came in worse than the market expectation of 2.5 million. The US Dollar Index extended its daily rally after this data and touched a fresh 20-day high at 100.56. At the moment, the index is up 0.27% on a daily basis at 100.47.

On Friday, market participants will be paying close attention to the preliminary first-quarter GDP data from Germany and the eurozone. “EUR/USD has been leaning lower, and this trend may extend if Germany's GDP misses expectations," said FXStreet analyst Yohay Elam while previewing Friday's key data releases. "The mix of weak eurozone data and a stronger dollar could push EUR/USD lower.”

Later in the day, the US economic docket will feature Retail Sales, Industrial Production data and the University of Michigan's Consumer Sentiment Survey.

Technical levels to watch for

EUR/USD

Overview
Today last price 1.0784
Today Daily Change -0.0034
Today Daily Change % -0.31
Today daily open 1.0818
 
Trends
Daily SMA20 1.085
Daily SMA50 1.0936
Daily SMA100 1.0985
Daily SMA200 1.1024
 
Levels
Previous Daily High 1.0897
Previous Daily Low 1.0812
Previous Weekly High 1.0981
Previous Weekly Low 1.0767
Previous Monthly High 1.1039
Previous Monthly Low 1.0727
Daily Fibonacci 38.2% 1.0844
Daily Fibonacci 61.8% 1.0864
Daily Pivot Point S1 1.0788
Daily Pivot Point S2 1.0757
Daily Pivot Point S3 1.0703
Daily Pivot Point R1 1.0873
Daily Pivot Point R2 1.0927
Daily Pivot Point R3 1.0958

 

 

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