Euro continues to lose ground against the US Dollar.

On Thursday, the Euro intensifies its losses against the US Dollar, leading EURUSD to go below 1.1000. And retest the 1.0920 zone, or weekly lows.

The Greenback, on the other hand, finds additional upside traction. Pushing the USD Index (DXY) back over the 103.00 level. Against the backdrop of a minor recovery attempt in US yields throughout the curve.

European equities are off to a mixed start on Thursday.

Further loss in the European currency was caused by poor data from the German labor sector. The unemployment rate rose to 5.9% in November. With the Unemployment Change increasing by 22K people.

The existing monetary policy stance remains unaltered. With investors factoring in the possibility of future interest rate cuts by both the Federal Reserve (Fed) and the European Central Bank (ECB) in the spring of 2024.

EMU Flash CPI, US PCE, and ECB Lagarde will seize the spotlight.

Extra data releases in Europe will include the announcement of advanced inflation estimates for the eurozone for November, as well as the unemployment rate. In addition, ECB President Christine Lagarde will appear at a Frankfurt event.

In the United States, inflation as measured by PCE and Core PCE will be the most notable event, followed by the typical weekly Initial Jobless Claims, Personal Income, Personal Spending, and Pending Home Sales. Daily market movers: Euro under pressure due to data, USD recovers

The EUR is losing ground against the USD.

Yields in the United States and Germany trade in a mixed bag.

Markets expect the Fed to lower interest rates in the second quarter of 2024.

Investors also expect the ECB to begin lowering interest rates in H1 2024.

Lagarde’s topic will be “Europe: Banking on Resilience.”

Technical Outlook

The 200-day simple moving average (SMA) is a significant support level for the euro.

The EURUSD pair is retracing to the 1.0920 level on Thursday, adding to the pullback seen on Wednesday.

Further loss might push the EURUSD closer to the 200-day SMA at 1.0816, as well as the preliminary 55-day SMA at 1.0676. From here, the weekly low of 1.0495 (October 13) before the round level is 1.0400 and the 2023 low is 1.0448 (October 3).

If bulls take control, the pair is anticipated to face the next up-barrier at the November high of 1.1017 (November 29), which is ahead of the August high of 1.1064 (August 10) and another weekly peak of 1.1149 (July 27), both of which precede the 2023 high of 1.1275 (July 18).

Meanwhile, the pair is anticipated maintaining its positive outlook while trading above the 200-day simple moving average.