- EUR/USD extends the rise and reaches towards the 1.0770 level.
- Preliminary inflation figures in Germany were 8.7% yoy in January.
- On the other side of the Atlantic, the initial requests for unemployment benefits will be published.
The common currency rebounds and raises the EUR/USD to the 3-day high zone around 1.0770during the European session on Thursday.
EUR/USD remains support around 1.0670
EUR/USD now sees some light at the end of the tunnel and manages to set aside five consecutive daily retracementsat the same time targeting the 1.0800 region in the middle of the renewed selling interest hovering over the dollar.
In fact, a more positive scenario for risk appetite underpins the bullish bias thus far for the pair, which, however, is still struggling to gain more convincing bullish traction after dipping to monthly lows last week near 1.0670.
Advanced inflation data in Germany have shown a slight rebound in headline CPI in January. In fact, consumer prices increased 8.7% year-on-year last month and 1.0% compared to the previous month.
On the US calendar, the usual weekly initial jobless claims will be the focus of investors’ attention during the European afternoon.
What can we expect from the EUR?
EUR/USD appears to have embarked on a decent recovery shortly after bottoming out at the 1.0670 area earlier in the week, always in response to the loss of bullish traction around the dollar.
Meanwhile, the evolution of the prices of the common currency should closely follow the dynamics of the dollar, as well as the possible next movements of the ECB after the central bank raised 50 basis points at its meeting last week.
Returning to the euro zone, it seems that the concern about a recession has dissipated, although it remains an important factor in sustaining the recovery of the common currency, as well as the hawkish discourse of the ECB.
EUR/USD levels
At time of writing, the EUR/USD pair is up 0.44% on the day, trading at 1.0757. Next resistance is at 1.1032 (2 Feb high), followed by 1.1100 (round level) and 1.1184 (31 Mar 2022 high). On the flip side, a drop below 1.0674 (55-day SMA) would target 1.0669 (Feb 7 low) en route to 1.0481 (Jan 6 low).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
