A fresh wave of greenback selling pressure emerged during mid European session, helping the EUR/USD pair to extend its ongoing recovery move from Wednesday’s multi-week lows near 1.0520 region.
Currently trading around 1.0630-25 band, off session peak touched in the past hour, long-dollar unwinding trade extended through European session on Thursday and has been an exclusive driver of the pair’s up-move on Thursday. In fact, the key US Dollar Index extended its reversal move from Wednesday’s one-month high, touched in the aftermath of upbeat US economic releases, and is now placed at fresh daily lows near 100.75 region, thus supporting the pair’s bid tone for the second consecutive day.
In absence of any relevant economic data from the Euro-zone, investors on Thursday will remain focused on the release of ECB monetary policy meeting minutes, due in a short-while from now. Later during NA session, the US economic docket that includes – weekly jobless claims, housing starts, building permits and Philly Fed manufacturing index, would also be looked upon for short-term trading impetus.
Technical levels to watch
Follow through buying interest above session peak resistance near 1.0640 level, leading to a subsequent strength above 1.0655 area, seems to lift the pair back towards reclaiming 1.0700 round figure mark, en-route 1.0715-20 horizontal resistance.
On the downside, 1.0600 handle now becomes immediate support to defend, which if broken seems to drag the pair back towards 1.0575 horizontal support. A subsequent drop below 1.0575 support would negate any near-term bullish bias and turn the pair vulnerable to head back towards 1.0525-20 support ahead of 1.0500 psychological mark.