EUR/USD finds support at 1.1445, the dollar remains weak

• EUR/USD drops to 1.1445, only to rebound back to 1.1470.
• US dollar remains under pressure amid risk appetite.

The EUR/USD dropped from two-month lows at 1.1481 to 1.1445, during the American session. The recovery of the dollar was short-live and the pair is back above 1.1465, looking at recent tops.

The greenback remains under pressure across the board, amid optimism across financial markets. In Wall Street, the Dow Jones gains 0.45% although the Nasdaq drops 0.65%. US yields are modestly lower on Thursday also affecting the dollar.

Yields and the dollar did not benefit from new inflation data released on Thursday that showed Producer Prices rising at the fastest pace in years. A different report showed initial jobless claims rose last week to the highest level in eight weeks. On Friday, economic data due includes the retail sales report.

Short-term outlook

After the breakout of 1.1370 and the confirmation above 1.1400, the outlook still looks bright for the euro. The current risk comes from the overbought readings on technical indicators. The immediate support is the 1.1445 area and below the correction could extend to 1.1410 without putting at risk the bullish bias.

A decline under 1.1350 should weaken the euro significantly, opening the doors to more losses. On the upside, above 1.1485, resistance is seen at 1.1500 and then a more solid barrier at 1.1520.

Technical levels