EUR/USD is largely on a downtrend as Europe struggles to overcome the third wave of coronavirus. Besides, the progress of its vaccination program is slower compared to that of the United States. However, on Thursday’s session, the pair is on a price consolidation pattern ahead of German retail sales. In January, the figure was lower-than-expected at -4.5% compared to the estimates of -0.3%. Analysts expect February’s reading to be higher at 2.0%.
In the course of the day, EUR/USD will be reacting to the manufacturing PMI from Italy, Germany, France, and the larger Eurozone. Besides, the US Department of Labor is scheduled to release data on initial jobless claims. Analysts expect a reading of 680,000, which would be lower than the prior week’s 684,000.
EUR/USD Technical Outlook
EUR/USD is trading sideways for the third consecutive session. On a 2-hour chart, it is trading below the 25 and 50-day exponential moving averages. Besides, it has formed a rectangle pattern whose upper and lower levels are 1.1761 and 1.1701.
On early Thursday, the pair was down by 0.04% at 1.1726. Overall, the bearish outlook remains. However, EUR/USD is likely to continue its sideways trading as the markets eases into the Easter holidays. Nonetheless, the German retail sales and manufacturing PMI figures are likely to impact the price movements. A breakout past 1.1700 to the downside will have the bears testing 1.1600.
On the flip side, a move past the resistance level of 1.1761 will place the next target at 1.1800. However, the pair will need to move past the 200-day EMA for an uptrend to be evident.