- Bears of EUR / USD take a kiss after Wednesday’s sale.
- Dollar holds profit after post-FOMC minutes.
- US Jobless Claims and ECB minutes in focus.
EUR / USD pair sees its adverse consolidation phase expanding to 1.1850 in Europe as the bears take a break after Wednesday’s more than 100-pips sale. The weakness in U.S. Treasury yields is seen to be upside in the U.S. dollar so far this Thursday.
The recent raid at the site of near-two-year highs of 1.1956 was mainly driven by a broad-based comeback of US dollars. The greenback stepped out of a solid recovery period from 27-month lows amid speculative interests and strong bond auction.
Meanwhile, the dollar bulls received further impetus from the minutes of the July FOMC meeting, which revealed that officials lacked support for the control of the yield curve, as one of the policy options.
On the EUR side of the story, the spike in new cases of coronavirus in Spain, Germany, France and Italy has made the EUR bulls uneasy. Growing fears about the second wave of the virus across Europe could likely weigh on the shared currency.
The focus has now shifted to the US Jobless Claims, Philly Fed Manufacturing Survey and the minutes of the European Central Bank (ECB) policy meeting which will be available later today for fresh trade guidelines.
EUR / USD Technical levels
“The bearish divergence (on the daily chart) suggests that the bullish trend is on steam. As such, the place could be a notable pullback in the long run. The direct support is seen at 1.1724 – the lower end of the side channel side chart. A breach there would expose the previous resistance-turning support at 1.1495 (high in March), ”explained FXStreet’s Analyst Omkar Godbole.
EUR / USD Additional levels
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