The EUR/USD pair reached a fresh 7-week high of 1.1242 late Thursday, as the greenback continued its recent downtrend following Wednesday’s dovish FOMC Minutes.
The pair ended the day well above the 1.1200 figure, maintaining a clear short term bullish bias.
Technically, the 1 hour chart shows that the 20 SMA has extended sharply above the 100 and 200 SMAs, and continues heading north below the current price, whilst the technical indicators are now consolidating near overbought levels.
In the 4 hours chart, the technical indicators are heading strongly higher above their mid-lines as the pair continues to advance, with the pair about to challenge 1.1243, June 30th daily high. A steady advance beyond it should see the pair continue advancing on Friday, eyeing the 1.1400/10 price zone for the next week.
Meanwhile Chinese stocks fell by 3.4%, accumulating an over 13% during the last 3 days and spurring global growth concerns, dragging equities sharply lower all over the world.
In Europe, Germany released weak PPI figures for July that anyway beat expectations, as the index stayed at 0.05 against expectations of a 0.1% drop.
In the US, weekly unemployment claims rose to 277K against 272K expected, putting the greenback under pressure.
Existing Home sales rose in July to a 5.59 million annualized rate, the highest level since February 2007, whilst the Philadelphia Fed Manufacturing Survey for July surged to 8.3 beating expectations. But good data was not enough to overshadow the fact that market players have dampened expectations for a September rate hike.
Greek Prime Minister Alexis Tsipras confirmed he is stepping down after nearly 8 months in the government, and called for snap elections for September 20th, but the news hardly affected the common currency.