- The US dollar falls further across the board, reversing Wednesday’s gains.
- EUR / USD targets 1.1750, turns positive for the week.
- US economic data disappointed expectations.
The EUR/USD It broke above 1.1735 and rose to 1.1749, reaching a new daily high, backed by a weaker US dollar that erased post-Fed gains. The euro returned near key short-term resistance of 1.1750.
The dollar is down across the board except against the yen. The Japanese currency is affected by risk appetite and higher US returns. The Dow Jones is up 1.52% and the Nasdaq is up 1.08%.
USD cuts Fed gains
The dollar rose on Wednesday after the FOMC meeting. Powell opened the doors to a declining announcement at the next meeting. “We believe that if job growth improves to around 500,000 this month, the Fed will pull the trigger to reduce it. The current Bloomberg consensus for September NFPs is 513,000 versus 235,000 in August, ”explained Brown Brothers Harriman analysts.
Economic data released Thursday in the US disappointed expectations, with initial jobless claims rising unexpectedly and the Markit flash PMI falling to the lowest in months. The dollar weakened after the reports.
Looking back at 1.1750
EUR / USD is likely to test again the 1.1750 zone that capped the upside several times during the current week. An earlier confirmation could add more strength to the bullish move. The next resistance is at 1.1780 followed by 1.1800. On the downside, a drop below 1.1715 would eliminate the positive intraday outlook. Support levels below could be seen at 1.1680 and 1.1660.
Technical levels
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