- EUR/USD falls again on Thursday but remains above recent lows.
- The dollar with mixed runs, stock futures in neutral ground.
- Several economic reports ahead, also Powell and ECB minutes.
EUR/USD is approaching 1.1100 in the early American session, after bottoming at 1.1070. In this way, the euro manages to avoid setting a new low in years. The recovery is not very strong at the moment, with the eyes of the market on Ukraine and on the next data.
Limited bounce, for now
EUR/USD keeps bearish bias intact. In the very short term, it faces resistance at 1.1105/10, which is a horizontal level and where the 20-hour moving average is passing.. In case of overcoming that area, the euro could gain momentum and extend the rebound. The next resistance is in the area of ​​1.1135.
The break of 1.1070 will expose Wednesday’s bottom at 1.1055. Below 1.1050 the declines could accelerate, favoring an extension towards 1.1025.
Lots of facts, more minutes and Powell again
The focus continues to be on the situation in Ukraine being the main factor, with the implications that this may have on general economic activity and prices. Regarding the latter, it was learned that wholesale inflation in January in the Eurozone rose 5.2%, more than the expected 2.3%, reaching an annual rate of 30.6%. The unemployment rate fell from 7% to 6.8%.
In minutes the minutes of the last meeting of the European Central Bank (ECB) that took place in February. This seems to be from another era, since said meeting was before the Russian invasion of Ukraine.
In the US, several relevant reports will be published: jobless claims, labor productivity, IHS Markit PMI and ISM services for February and factory orders. In turn, Jerome Powell, the chairman of the Federal Reserve will testify again, this time before a Senate committee.
Technical levels
Source: Fx Street
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