The EUR/USD pair fell further on Thursday, reaching a daily low of
1.1891, a level that was last seen early in April. The dollar kept
ruling on the heels of the US Federal Reserve monetary policy decision,
as the central bank surprised with a hawkish stance, hinting at possibly
two rate hikes in 2023 while upwardly reviewing its growth and
inflation forecasts. Stocks showed a late reaction to the latest Feds
stance, edging sharply lower during the US afternoon.To get more news
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The EU published May inflation figures. The Consumer Price Index was
confirmed at 2% YoY, while the core reading resulted at 1%, slightly
better than anticipated. As for the US, the country published the June
Philadelphia Fed Manufacturing Survey, which printed at 30.7, below the
31 expected. Initial Jobless Claims for the week ended June 11
unexpectedly jumped to 412K, worse than the 359K expected. The
macroeconomic calendar will include on Friday the German May Producer
Price Index and the EU April Current Account. The US wont publish
relevant data.
EUR/USD short-term technical outlook
The EUR/USD pair bounced from the mentioned low, heading into the
Asian session trading around 1.1910. The pair has reached extreme
oversold conditions in the near-term, and a corrective advance is not
out of the table, although bears retain control. The 4-hour chart shows
that the pair has broken below all of its moving averages, with the 20
SMA heading south below the longer ones. Technical indicators are
bouncing modestly from extreme readings but hold within oversold levels.
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