FX.co ★ Crude | EUR/USD

The EUR/USD currency pair experienced a notable decline of over 0.20% on Thursday, primarily influenced by robust economic indicators from the United States and the European Central Banks (ECB) decision to maintain its current interest rates. The pair was observed trading at 1.1749 at the time of reporting, having touched an intraday peak of 1.1789 earlier in the session. In the United States, encouraging news emerged from the labor market as the Department of Labor reported that initial jobless claims were lower than anticipated, signaling a positive trajectory for employment. However, a less optimistic undertone was present in the continuing jobless claims, which remained largely static, indicating that individuals who have lost their jobs are facing challenges in securing new employment. Further data showed a mixed picture for the US economy, with the S&P Global Manufacturing Purchasing Managers Index (PMI) experiencing a contraction after previously hitting a 37-month high. Conversely, the services PMI demonstrated improvement, suggesting resilience in that sector. Late in the trading day, market participants showed some apprehension following US President Donald Trumps visit to the Federal Reserve, where he publicly urged Fed Chairman Jerome Powell to implement interest rate cuts during a tour of the newly renovated facility, raising concerns about potential political interference in monetary policy.

Meanwhile, in the Eurozone, the European Central Bank opted to keep its three main benchmark interest rates unchanged. This decision was largely expected, as the ECBs Governing Council remains divided between those advocating for further monetary easing and those against it. The central bank communicated its preference for a "data-dependent and meeting-by-meeting approach" to future interest rate decisions. On the economic data front for the Eurozone, the preliminary manufacturing PMI from the ECB showed an improvement, although manufacturing activity continues to linger in contractionary territory, underscoring ongoing challenges for the regions industrial sector. From a technical analysis perspective, the EUR/USD pair found some stability after reaching a weekly high of 1.1788 but was unable to breach the significant 1.1800 resistance level. The Relative Strength Index (RSI), a momentum indicator, continues to suggest a bullish bias; however, there are signs that buying momentum is waning as the index gravitates closer to its neutral line. Should the EUR/USD pair fall below its 20-day moving average, currently positioned at 1.1714, it is anticipated to test the 1.1700 support level. A decisive break below 1.1700 would then open the door for a test of the 50-day moving average, located further down at 1.1556. Conversely, if the pair manages to break above the 1.1800 barrier, it could target its year-to-date high of 1.1829, with the next potential resistance point seen at 1.1850.