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EUR/USD found the high end on Thursday, holding fast to the 1.1150 level, though most of the pair’s bullish momentum comes from a broad-market selloff in the Greenback rather than any particular bullish fix in the Euro.The economic data docket has been particularly light on the European side of things this week. All that remains of moderate note to EUR traders is a scheduled appearance from European Central Bank (ECB) President Christine Lagarde on Friday. Still, even that will be happening during US market hours. ECB President Lagarde will be speaking at the Michel Camdessus Central Banking Lecture in Washington DC.On the US side of things, Initial Jobless Claims eased back to 219K for the week ended September 13, down from the previous week’s revised 231K and under the median market forecast of 230K. The Philadelphia Fed Manufacturing Survey for September also printed well above expectations, with the spread index of manufacturing conditions improving to 1.7 from the previous seven-month low of -7.0 and handily beating the expected print of -1.0.Fed Chair Jerome Powell convinced markets that the Fed’s outsized jumbo cut of 50 bps this week wasn’t a snap response to deteriorating economic conditions but rather an attempt to get ahead of the curve and bolster the US labor market. Powell successfully floated a rebranding of an entire half-percentage-point cut as a “recalibration,” and investors rewarded the Fed’s latest narrative pivot by pulling out of the Greenback across the board and plowing cash into higher-yielding assets.
EUR/USD price forecast
Despite this week’s Fed-fueled rally, EUR/USD continues to churn just north of the 1.1100 handle. The post-Fed rally has kept Fiber even-keeled in the midweek, but meaningful momentum has yet to materialize and the pair could be poised for an exhaustion play. However, EUR/USD is still cycling chart paper on the high end of recent momentum, and short pressure will have a difficult time staging a full pullback to the 50-day Exponential Moving Average (EMA) near 1.1000.
EUR/USD daily chart
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