The EUR/USD currency pair is currently trading positively above the 1.1350 level after experiencing a two-day decline. Despite an upward movement, the technical outlook suggests a potentially bearish trend in the near term, indicating caution for traders.
On Wednesday, the EUR/USD faced significant bearish pressure, declining nearly 1%. After reaching a weekly low around 1.1300, the pair has since managed to recover and move above 1.1350. However, the recent rebound does not yet signal a substantial increase in bullish momentum, leaving traders wary of further declines.
The US dollar has shown resilience, particularly after a report indicated that the White House is contemplating reducing tariffs on Chinese imports to alleviate trade tensions. In discussions surrounding US-China trade relations, US Treasury Secretary hinted that both nations recognize that the prevailing tariff levels are not sustainable, implying potential for future adjustments.
Market participants are closely monitoring the German business sentiment index from the CESifo Group, as a significant downturn in business confidence could negatively impact the EURO . Additionally, the US Department of Labor is set to release the weekly Initial Jobless Claims data. Analysts anticipate an increase in first-time unemployment applications, projecting a rise to 221,000 from 215,000. A figure closer to 200,000 could bolster the USD’s strength, potentially driving the EUR/USD lower. Conversely, if claims exceed 230,000, it could lead to a stronger EURO -based rebound.
From a technical perspective, the EUR/USD has key support levels at 1.1340, which coincides with the lower boundary of the ascending channel. Additional support can be found at 1.1280 and 1.1220, marked by the 100-period simple moving average. On the upside, resistance levels are identified at 1.1400, 1.1450, and a significant round number at 1.1500, indicating potential levels for future movement.
