EUR/USD Correction Unveiled: A Tactical Approach

The EUR/USD experienced a pullback on Wednesday, settling around the 1.0850 mark as a result of a strengthened US Dollar spurred by the release of positive US economic data. This downturn follows the pair's retreat from monthly highs, interpreted as a corrective move. According to our technical analysis, the pair adhered to the predicted retracement, and today's price action suggests a minor correction, with the 61.8% Fibonacci level presenting a potential entry point for new positions. Notably, the previous entry remains at breakeven.

Thursday brings key data releases, including the preliminary November PMI. Forecasts indicate potential improvements, although all figures are anticipated to stay below 50. A negative surprise in this data could exert additional pressure on the ongoing correction in the EUR/USD. Projections expect the Flash Services EZ PMI to rise from 47.8 to 48.0 and Manufacturing from 43.1 to 43.3. Additionally, the European Central Bank (ECB) is scheduled to release the minutes of its most recent monetary policy meeting on Thursday.

The US Dollar continued its recovery from monthly lows, gaining momentum following the release of mixed US data. This data revealed a larger-than-expected decline in Jobless Claims and a more substantial contraction than forecasted in Durable Goods Orders. It's worth noting that US markets will be closed on Thursday.


Below 1.1000 look for further downside with 1.0830 & 1.0780 as targets.

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