EUR/USD meets fresh supply near 1.0890 on EU eco forecasts

Any upside attempts made by the Euro against its American counterpart this Thursday remain limited by 1.09 handle, as sellers keep lurking just below the last.

EUR/USD: 5-DMA (1.0902) to keep the bulls restricted

The renewed uptick in the major lost legs just shy of 1.09 handle, now dropping back towards the familiar range near 1.0875 region. The latest leg lower can be mainly attributed to the mixed Eurozone growth and inflation forecasts, as published by the European Commission (EC) over the last hour.

EC ups 2017 Eurozone GDP forecasts, but slashes inflation forecasts

Additionally, fresh demand for the US dollar hit the fx space, collaborating to the retreat in the EUR/USD pair. The USD index caught a fresh bid wave near 99.35 region and now recovers to 99.50 levels, trading almost unchanged on the day.  

Meanwhile, the pair fails to benefit from the cross-driven strength, as the EUR/GBP cross jumped to 0.8430 levels following the releases of downbeat economic data from the UK docket.

UK March industrial and manufacturing production: A big miss on expectations

United Kingdom Goods Trade Balance came in at £-13.441B, below expectations (£-11.8B) in March

All eyes now remain on the BOE’s policy decision and quarterly inflation report (QIR) release for any rub-off effect on the Euro. Meanwhile, Fedspeaks, US jobless claims and PPI data will hog the limelight in the NA session.

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet notes, “The immediate support is still 1.0850, where the pair bottomed multiple times during these last few weeks, followed by 1.0820, the 50% retracement of the post-US election slide and the lowest since the first round of the French election. The bearish momentum will likely accelerate on a break below this last, with 1.0770 and 1.0730 being the next intraday supports. Above 1.0900, the pair has a tough zone between 1.0930 and 1.0950, with gains above this last required to confirm bulls retook the lead.”