On Thursday, financial markets remain calmer, with the EURUSD maintaining around 1.0700. Following some first-tier numbers from the United States and revived demand for the Greenback, the American currency lost pace. Stock market gains and falling government bond rates are contributing to the US Dollar’s short-term weakness.

The Euro, on the other hand, is incapable of garnering speculative interest. On the one hand, Eurozone macroeconomic numbers revealed recently were worse than expected, indicating an economic downturn. On the other hand, European Central Bank (ECB) officials who were on the lines failed to provide any new information. ECB President Christine Lagarde said on Wednesday that a 50-basis point (bps) rate rise will occur in March, with additional rate hikes to be determined at the March meeting.

The ECB issued the Economic Bulletin on Thursday, providing updates on economic, financial, and monetary developments in the Eurozone. According to the paper, the Governing Council anticipated declining global economic activity at the start of the year, following solid growth in the third quarter of 2022. It also stated that “future policy rate choices will remain data-dependent and would be made meeting by meeting. In terms of data, the United States will provide January Building Permits and Housing Starts, Initial Jobless Claims for the week ending February 10, and the January Producer Price Index (PPI).

EURUSD Technical Outlook

EURUSD pair is trading at the lower end of its intraday range, attempting to hold the 1.0700 level. The daily chart’s technical indications are neutral-to-bearish, as the pair continues to meet sellers ahead of 1.0745, the 61.8% retracement of the 2022 annual drop.

Furthermore, the 20 Simple Moving Average (SMA) gets downward velocity above the present level, while technical indicators remain bearish. On the plus side, the 100 SMA moves above a flat 200 SMA, but it is in the 1.0390 zone, which is too far away to be meaningful in the near term.

According to the 4-hour chart, the pair is bearish. The shorter SMA caps move while the longer ones remain above it. Simultaneously, technical indications

Head south within negative levels, with some downward momentum. To gain negative strength, the pair still has to break through the weekly low at 1.0655, with a challenge of the 50% retracement of the previous drop at 1.0515 in mind.