On Monday, the EUR/USD opened up 0.13% at 1.08825 and is still trying to reach the 1.0900 level amid improving market sentiment.
The US dollar fell slightly as investors are cautious, waiting for more clues on the path of US interest rates following dovish comments from Federal Reserve officials.
After rising on Wednesday, the EUR/USD is struggling to maintain its bullish momentum despite Thursday's decline, FX Street reports.
On the 16th, the US dollar (USD) managed to regain some of its lost ground after the release of data from the Labor Department, which showed that 222,000 initial jobless claims were filed last week, down from 232,000 the previous week. In addition, recent comments from Fed officials regarding policy easing have helped the USD remain resilient against its major currency rivals.
Atlanta Fed President Raphael Bostic said he was pleased with the progress of inflation in April but noted that the Fed is not yet ready to cut interest rates. FRB Cleveland President Loretta Mester said monetary policy has been well thought out, and they hope to review additional data. FRB Richmond President Thomas Barkin told CNBC that the latest CPI data shows that inflation is not in line with the Fed's targets.
The EUR/USD is trading at 1.0875. The Relative Strength Index (RSI) has stabilized above 60. This suggests that Thursday's pullback was a technical correction and not the beginning of a reversal.
The next resistance level for the pair is at 1.0890, which, if breached, will set the stage for a breakout to 1.0900 and further growth towards 1.0940.
At the same time, the main support level is at 1.0830, the breach of which will open the way to 1.0820.
Read also: Uncertainty in the BTC market can lead to high volatility in the asset