EUR/USD stretching its legs, reaching towards 1.0550 for Thursday
|- The EUR/USD is extending its lift after reclaiming the 1.050 level.
- ECB officials take turns talking down the possibility of rate hikes moving forward.
- Markets are rolling over to start focusing on another US NFP Friday after Thursday's data beat.
The EUR/USD is reaching higher on Thursday, making a stretch for 1.0550 heading into the end-week populated with US Non-Farm Payroll (NFP) figures. The Euro (EUR) is up a scant 0.3% from Thursday's opening bids of 1.0506 as European Central Bank (ECB) officials continue to talk down the potential for a continuation of the rate hike cycle.
US weekly Initial Jobless Claims rise to 207K vs. 210K expected
The US Dollar (USD) saw a clean beat of market expectations for Thursday, with Initial Jobless Claims printing a slight uptick to 207K from 205K, but still clearing the market forecast 210K.
All that remains for the week is US NFP figures due on Friday. Markets are forecasting a slight decline from 187K to 170K for the headline figure for September.
Read More:
ECB's Villeroy: I don't think an additional rate hike is justified
ECB de Guindos: It's premature to discuss rate cuts
ECB’s Kazimir: Believe that our last rate hike was the last
EUR/USD technical outlook
EUR/USD bids are tapping into the 200-hour Simple Moving Average (SMA) near 1.0540 as the Euro looks to extend its recent rebound against the Greenback. A consistent lower-highs pattern leaves bullish momentum firmly underpowered, and Euro bidders will need to first reclaim 1.0600 before staging a longer-term recovery.
On the daily candlesticks the EUR/USD remains firmly bearish, down over 6.5% from Juily's peaks, and price action remains far below the 200-day SMA near 1.0825. Bidders will need to break and hold above a descending trendline from 1.1275, and a downside slip will see new eleven-month lows below 1.0448.
EUR/USD hourly chart
EUR/USD daily chart
EUR/USD technical levels
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