“¢ A modest USD recovery move prompts some profit-taking on Thursday.
“¢ Risk-off mood/upbeat US data remained supportive of the USD rebound.
The EUR/USD pair extended its steady intraday decline and retreated further below the 1.1400 handle, eroding a part of the previous session’s strong gains.
The pair failed to capitalize on the post-FOMC upswing to six week tops (mid-1.1400s) and witnessed some profit-taking on Thursday, snapping four consecutive days of winning streak amid a modest US Dollar rebound.
It is worth reporting that the key USD Index plunged to its lowest level since early February on Wednesday after the Fed indicated there will be no more rate hikes in 2019 and also downgraded its economic outlook.
However, a global wave of risk-aversion trade, amid renewed concerns over a disorderly Brexit and US-China trade disputes, seemed to underpin the greenback’s relative safe-haven status against its European counterpart.
The USD rebound remained supported today’s stronger than expected Philly Fed manufacturing index and a larger than anticipated drop in the initial US weekly jobless claims data, albeit failed to provide any fresh impetus.
It would now be interesting to see if the pair is able to find any fresh buying interest at lower levels or the current pull-back marks the end of recent bullish trajectory as the focus now shifts to Friday’s flash Euro-zone PMI prints.
Technical levels to watch
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