- EUR / USD falls to 1.1445, only to rally again to 1.1470.
- The US dollar remains under pressure amid appetite for risk.
The EUR/USD it fell from two-month lows at 1.1481 to 1.1445, during the American session. The dollar’s recovery was short-lived and the pair is back above 1.1465, looking at recent highs.
The dollar remains under pressure across the board, amid optimism in financial markets. On Wall Street, the Dow Jones gained 0.45% while the Nasdaq was down 0.65%. US yields are modestly lower on Thursday and also affect the dollar.
Yields and the dollar did not benefit from new inflation data released Thursday that showed producer prices rose at the fastest pace in years. A different report showed that initial jobless claims rose last week to the highest level in eight weeks. On Friday, the forecast economic data includes the retail sales report.
Short term outlook
After the breakout of 1.1370 and confirmation above 1.1400, the outlook for the euro remains promising. The current risk comes from overbought readings on technical indicators. Immediate support is the 1.1445 zone and below the correction could extend to 1.1410 without risking the bullish bias.
A drop below 1.1350 should significantly weaken the euro, opening the door to further losses. To the upside, above 1.1485, resistance is seen at 1.1500 and then a more solid barrier at 1.1520.
Technical levels
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