August 11, 2022 14:57:27
The shared currency marks the fourth straight session of gains on Thursday. A risk-on mood and softer U.S. dollar added a headwind to the EUR/USD pair.
Investors continued to digest softer U.S producer prices as the market took it as a signal that Federal Reserve might go for a less aggressive monetary policy.
The U.S. 10-year benchmark yield gained marginally toward the 2.79 level. Despite a recovery in the yields, the U.S dollar index dropped further below $105, closing in on its lowest level since late June.
In addition to that, the U.S Initial Jobless Claim rose by 14K to 262,000 the week ended on August 6th, below the market expectations of 263,000. However, this is the highest since November.
As per the European Union’s Statistical office of Eurostat, the Eurozone GDP is projected to increase by 0.7% in Q2 as compared to Q1.
EUR/USD tested 1.0350 critical level
On the daily chart, the EUR/USD pair has been trading inside the descending channel from the highs of 1.0773. The price attempted to break the upper trend line but failed to do so.
Recently, the price scaled up the critical 50-day EMA at 1.0330 for the first time since February. However, the price failed to sustain and continued to slide down.
The MACD hovers below the mid-line with a bullish crossover. Any uptick in the indicator would bring gains in the pair.
A successful breach of 1.0370 on the daily basis could see the price moving toward 1.0480.
On the flip side, a break below the 50-day moving average would invalidate the bullish outlook. The price could fall up to $1.0200 in the short term.
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