EUR/USD at session lows near 100-DMA after mixed US data

The EUR/USD pair extended its sharp reversal move from weekly tops and refreshed session low to test 100-day SMA support near the 1.0625 region during early NA session. 

The pair, however, has a muted reaction to the US macro releases that showed weekly jobless claims remained unchanged at 234K for the week ended April 7, which was better-than consensus estimates pointing to a rise to 245K. 

The positive labor market reading, however, got negated by an unexpected drop in the PPI, coming in at -0.1% m-o-m for March. Meanwhile, the yearly rate ticked higher to 2.3% during the same period, but was marginally below 2.4% expected. 

Mixed US economic data failed to extend any additional support to the greenback's ongoing recovery move. The key US Dollar Index held on to its recovery gains and remains a key driver of the pair's downslide on Thursday. 

The pair has now virtually reversed majority of its previous session's strong gains led by bearish comments by the US President Donald Trump and now seems all set to extend the bearish slide further towards testing its important support near the 1.0600 handle.

Next in focus would be the release of Prelim UoM Consumer Sentiment, which is expected to tick lower from previous month's 96.9 and come-in at 96.6 for April.

Technical levels to watch

On a sustained break below the 1.0600 handle support, the pair is likely accelerate the slide towards 1.0570 level (Monday’s low) before eventually dropping to 1.0540 support ahead of the key 1.0500 psychological mark.

Immediate barrier on the upside is now seen near 1.0645-50 zone, which if cleared decisively could lift the pair back towards 1.0675-80 strong hurdle. A convincing break through the said resistance is likely to trigger a short-covering rally beyond the 1.0700 handle towards its next resistance near 1.0730 level.