The single currency exhibited notable activity on Thursday but ultimately remained at its previous levels. After going through a significant decline, the euro quickly lost its positions. These movements were not related to the US unemployment claims report. The total number of claims had decreased by 42,000, against a forecast of a 4,000 increase. The market generally stood still after the report. Some time later, the euro started to trade higher, although based on the data's nature, it should have fallen. So, the market is currently treading water and is expected to continue doing so throughout the day, as the economic calendar is empty.
The downward cycle for the EUR/USD pair was interrupted around the level of 1.0850, afterwards the price fell back to the lower boundary of the previously established sideways channel of 1.0900/1.1000.
On the four-hour chart, the RSI indicator is moving in the lower area of 30/50, which indicates a prevailing bearish sentiment.
On the same time frame, the Alligator's MAs are headed downwards, confirming the bearish cycle.
Outlook
The range below the level of 1.0900 indicates a prevailing bearish sentiment among market participants. However, in order to raise the selling volumes, the price must settle below 1.0850. In this case, the price could move towards the local low of December 2023. As for the bullish scenario, it will become relevant if the price settles above the level of 1.0900 on the daily timeframe. In this scenario, the pair could move along the previously established area of 1.0900/1.1000.
The comprehensive indicator analysis in the short-term and intraday periods points to a mixed picture as the market remains stagnant within the 1.0850/1.0900 range.
