- The USD extends post-FOMC upsurge to fresh two-year lows and kept exerting pressure.
- Technical selling below the 1.1100 mark prompts some follow-through selling on Thursday.
- Traders now look forward to the US ISM manufacturing PMI for some short-term opportunities.
The EUR/USD pair continued losing ground through the mid-European session on Thursday and dropped to fresh daily lows, around the 1.1030-25 region in the last hour.
The pair remained under some intense bearish pressure for the second consecutive session on Thursday and added to the overnight post-FOMC heavy losses amid a strong follow-through US Dollar upsurge to two-year tops.
The Fed on Wednesday delivered its first interest rate cut in over a decade, as anticipated, but ruled out the possibilities of an extended policy easing cycle and provided an additional boost to the recent USD bullish run.
Apart from broad-based USD strength, the ongoing downfall to the lowest level since May 2017 lacked any obvious catalyst but could be attributed to some follow-through technical selling below the post-ECB swing lows – around the 1.1100 handle.
Moving ahead, Thursday’s US economic docket – highlighting the release of ISM manufacturing PMI, will now be looked upon for some short-term trading impetus later during the early North-American session.
The key focus, however, will remain on Friday’s closely watched US monthly jobs report – popularly known as NFP, which might now turn out to be the next big trigger that might influence the pair’s near-term trajectory.
Technical levels to watch
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