EUR/USD turns negative near 1.2360, US data eyed

• The pair stays sidelined within the daily range around 1.2365/85.
• USD slightly bid ahead of the opening bell in Europe.
• US manufacturing gauges next on tap later in the day.

The European currency is alternating gains with losses vs. its American counterpart on Thursday and is taking EUR/USD to the 1.2380 area, up smalls for the day.

EUR/USD attention to US docket

The pair keeps navigating the upper end of the recent range, although it has once again faltered just above 1.2400 the figure while the ‘double tops’ near 1.2450 continue to cap the upside for the time being.

EUR came under renewed selling pressure on Wednesday following dovish comments from President M.Draghi, who addressed the lack of convincing upside traction in inflation and added that the exchange rate level could affect inflation prospects. He, however, showed confidence that consumer prices could clinch the central bank’s goal in the medium term.

In the meantime, concerns over the potential global trade war continue to drive the risk sentiment among traders and remain a significant driver for the price action.

Nothing worth mentioning data wise in the euro area, whereas the US manufacturing sector will be in centre stage in light of the publication of the Empire State index and the Philly Fed index as well as the usual weekly report on the labour market.

EUR/USD levels to watch

At the moment, the pair is retreating 0.02% at 1.2365 facing the next support at 1.2273 (low Mar.9) seconded by 1.2206 (low Feb.9) and finally 1.2165 (low Jan.18). On the other hand, a break above 1.2446 (high Mar.8) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.18).