- The euro cuts with three days of rises against the dollar.
- EUR/USD remains slightly bullish in the very short term, but without strength.
- Ahead: US data on manufacturing and jobless claims.
The EUR/USD is cutting three days higher and losing ground on Thursday against a firmer dollar. The pair recently fell to 1.0001 and then bounced back slightly. Prior to US data it trades around 1.0015, continuing in a familiar range.
The short term chart shows a slight bullish bias in EUR/USD but with upside capped by 1.0050/55. The euro needs to break and firm above to gain support for a stronger recovery. In the opposite direction, for the next few hours, a fall below 1.0000 would increase bearish pressure. Next support is at 0.9950 and then comes the weekly low at 0.9910.
The dollar is rising across the market on Thursday, against a backdrop of higher Treasury yields and a further drop in stock markets around the world.
The euro It continues to be one of the currencies that most resists the strength of the dollar at this time. This is partly due to growing expectations of a 75 basis point hike by the European Central Bank next week. However, EUR/USD still looks under pressure.
Germany released retail sales figures showing a 1.9% recovery in July. In Europe, the final readings of the S&P Global PMIs were released, which showed no surprises with respect to the preliminary readings. The unemployment rate in July remained at 6.6%.
Looking ahead to the next few hours, the economic calendar shows data from the US, highlighting the weekly report on requests for unemployment benefits and the Manufacturing ISM. On Friday it will be the turn of non-farm payrolls.
Technical levels
Source: Fx Street
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