EUR/USD unable to recover 1.2100, erases daily gains

• EUR/USD turned to the downside near 1.2100.
• Price flat for the day, still under pressure.

The EUR/USD rose after the beginning of the American session toward the 1.2100 area again. Like what happened on European hours it lost momentum and tuned to the downside. It fell recently to 1.2064, above the daily low of 1.2050. The euro remains weak versus the US dollar, near the weekly lows.

The retreated from the 1.2100 took place as the US dollar stabilized across the board after a slide following Wall Street’s opening bell and amid a decline in US yields. The 10-year dropped to 1.66% after hitting 1.70% earlier on Thursday.

The improvement in risk appetite helped EUR/USD remain above 1.2050. The Dow Jones gains 1.30% and the Nasdaq 0.65%. Economic data form the US showed again higher than expected inflation readings (April’s PPI) and a bigger-than-expected decline in initial jobless claims.

Short-term outlook: Failure at 1.2100

In the short-term the EUR/USD is biased to the downside. A test of the 1.2050 area over the next sessions should not be ruled out.  The next support stands at 1.2025 and then a strong barrier is seen at 1.1995/1.2000.

A consolidation above 1.2100 would alleviate the bearish pressure. And above 1.2120, the short-term bias would likely favor the upside.

Technical levels