The EURUSD closed sideways on Thursday, where the early loss was eliminated during the US session. Following its one-month high, the US Dollar Index has declined as the influence of strong US Retail Sales data has diminished.
Christine Lagarde, president of the European Central Bank (ECB), addressed the audience on Wednesday at the Davos World Economic Forum. She refuted the notion of aggressive rate cuts and confirmed that the dovish posture adopted by the ECB would endure until the following summer. ECB president, Christine Lagarde is scheduled to deliver another address in Davos.
US Dollar Index Was Depreciated After The Upbeat Retail Sales Data
US Retail Sales exceeded initial projections earlier today, underscoring the robustness of the US economy. It also correlates with recent remarks made by Federal Reserve (Fed) officials that advised against prematurely acclaiming triumph over inflation.
As of late September 2022, the number of US citizens applying for unemployment insurance benefits decreased by 187K in the week ending January 13.
The advance seasonally adjusted insured unemployment rate was 1.2%, and the four-week moving average was 203.25K, a reduction of 4.750K from the amended average of the previous week. Continuing Claims also decreased by $26,000 to $1,806 million during the week ending January 6.
EURUSD Technical Analysis
In the daily chart of EURUSD price, the recent price trades within a downside pressure as a strong bearish daily candle is visible below the dynamic 20 DMA level. Moreover, a corrective price action is visible below the dynamic level and within a descending channel.
Moreover, the downside possibility is supported by the immediate bullish pressure from the 1.1018 level and a bearish Change of Character formation. Meanwhile, the 24-period RSI remains sideways below the 50.00 line, signaling an ongoing bearish momentum in the main chart.
Based on the current market outlook, a downside continuation is potent, aiming for the 1.0724 support level. On the other hand, a stable buying pressure might come after overcoming the 1.1018 level with a daily close.
