The Euro’s downward bias gathers extra steam against the US Dollar on Thursday, forcing EUR/USD to retreat to the vicinity of the key support at 1.0900 the figure, or weekly lows.On the other hand, the Greenback picks up extra upside traction and lifts the USD Index (DXY) back above the 103.00 barrier against the backdrop of a tepid recovery in US yields, particulalry in the belly and the long end of the curve.Looking at the broader scenario, the current setting for monetary policy retains an unchanged character, with investors factoring in the potential for prospective interest rate reductions by both the Federal Reserve (Fed) and the European Central Bank (ECB) in the spring of 2024.Further weakness around the European currency came in response to disappointing figures from the German labour market, where the Unemployment Rate ticked higher to 5.9% in November and the Unemployment Change increased by 22K individuals. Adding to this view, flash Inflation Rate in the broader Eurozone showed the CPI gained 2.4% in the year to November, while the Core CPI rose 3.6% from a year earlier and the Unemployment Rate held steady at 6.5%.
Later in the session, ECB’s President Christine Lagarde is also due to speak at an event in Frankfurt.In the US, inflation measured by the PCE and Core PCE will be the salient event, seconded by the usual weekly Initial Jobless Claims, Personal Income, Personal Spending and Pending Home Sales. Daily digest market movers: Euro leaves the door open to extra losses

 Technical Analysis: Euro meets a minor support at 1.0852The acceleration of the downward trend sees EUR/USD retreating to the 1.0920 zone on Thursday, adding to Wednesday’s retracement.Further weakness could see EUR/USD facing an initial minor suport at 1.0852 (November 22). If cleared, the pair could then challen the key 200-day SMA at 1.0816, ahead of the provisional 55-day SMA at 1.0676. Down from here emerges the weekly low of 1.0495 (October 13) prior to the 2023 low of 1.0448 (October 3) and the round level of 1.0400.In case bulls regain the upper hand, the pair is expected to meet the next up-barrier at the November high of 1.1017 (November 29) ahead of the August top of 1.1064 (August 10) and another weekly peak of 1.1149 (July 27), all of which precede the 2023 high of 1.1275 (July 18).Meanwhile, the pair is seen maintaining its constructive outlook while above the 200-day SMA.More By This Author:USD Index Faces Some Pressure Around 102.80 Ahead Of PCEGold Futures: Extra Gains On The Cards EUR/USD Price Analysis: Attention Now Shifts To 1.1064