- DXY off highs, but still up for the second day in a row.
- EUR/USD intraday bias points lower despite rebound.
The EUR/USD pair bottomed earlier on Thursday to 1.1190, reaching the lowest level since Monday and then it rebounded. The recovery from the lows found resistance at 1.1230 and as of writing, it trades at 1.1220 down 30 pips for the day.
The pair is falling for the second day in arrow, erasing most of the weekly gains as the US dollar remains strong. The US Dollar Index (DXY) rose to 97.60, the highest in four days, before pulling back below 97.50. As the DXY moved off highs, EUR/USD rebounded.
US data makes no difference, all about USD
The US dollar continues to be the key driver of price action. Economic data released on Thursday from the US was mostly ignored by market participants. Initial Jobless Claims fell less than expected, Q1 GDP revision showed no surprises, and Durable Goods Orders rebounded more than expected in May.
Equity prices in Wall Street are moving between gains and losses, without a clear direction. Crude oil prices are modestly higher, while gold is flat. So far, it has been a quiet session across US financial markets.
Technical levels
The bias in EUR/USD continues to point to the downside in the very short-term despite the rebound. A recovery above 1.1235 (20-hour moving average) would remove the negative bias favoring further gains, to a test of 1.1250. Above the next resistance is seen at 1.1280.
On the downside, the area around 1.1190 contained the slide; a break lower would expose weekly lows at 1.1165. If euro losses 1.1160, an increase in volatility might be seen, following a steeper decline.
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