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EURUSD In Search Of Direction

Summary

After a decent decline yesterday, EURUSD resumed bullish attempts on Thursday but the upside momentum looks limited at the moment.

German CPI data came in line with expectation and failed to impress the common currency.

In the short-term, the pair will likely remain in a consolidation mode, searching for direction.

  After a decent decline yesterday, EURUSD resumed bullish attempts on Thursday but the upside momentum looks limited at the moment, as the pair struggles to get back above the 1.13 threshold but holds above the 100-DMA at the same time.

  German CPI data came in line with expectation and failed to impress the common currency. Meanwhile, the greenback is trading under a mild selling pressure but remains afloat in general amid the prevailing risk aversion in the global financial markets. The ongoing protests in Hong Kong coupled with trade worries make investors cautious.

  In the short-term, the pair will likely remain in a consolidation mode, searching for direction. On Friday, the US retail sales data could affect the dollar pairs, including EURUSD. Should the numbers disappoint, expectations of a rate cut by the Fed will rise further. In this case, the euro may settle above 1.13, where the 1.1350 area acts as a key local resistance on the way to the 200-DMA that now comes at 1.1360.