Euro regains traction and flirts with daily tops near 1.0870, focus remains on US docket.

Euro exchanges gains with losses near 1.0860 vs. the US Dollar.

Stocks in Europe trade on the defensive across the board on Thursday.EUR/USD remains unable to gather sustainable upside traction.

The Euro (EUR) remains unabale to find fresh buying interest and keeps hovering around the 1.0850/60 region vs. the US Dollar (USD) on Thursday. Indeed, EU/USD attempted a bull run to the 1.0870/75 band earlier in the European session, although the move lacked follow through and prompted some correction soon afterwards.

Meanwhile, renewed selling pressure around the Greenback forces the USD Index (DXY) to recede to the 103.20 zone despite the positive backdrop of further upside in US yields across the curve, as market participants keep digesting the release of the FOMC Minutes of the June 14 gathering (Wednesday).

In terms of monetary policy, there are no major updates, and investor expectations remain stable regarding an anticipated 0.25% interest rate hike from both the European Central Bank (ECB) and the Federal Reserve (Fed) at their respective upcoming meetings later this month.

In the euro docket, Factory Orders in Germany expanded more than expected at a monthly 6.4% in May, while Retail Sales in the whole euro area came in flat MoM in May and contracted 2.9% from a year earlier.

Across the pond, the US labour market will be in the centre of the debate with the publications of the ADP Report and the weekly Initial Jobless Claims. In addition, the ISM Services PMI should give markets further details on how the sector fared in June along with the Balance of Trade results.Daily digest market movers: Euro appears bid ahead of US data

The Euro meets support in fresh weekly lows near 1.0830 on Thursday.

Risk appetite trends lend temporary support to the pair so far.

Technical Analysis: Euro appears decently supported around 1.0830

EUR/USD keeps failing to gather serious pace and remains poised to probe lower levels in the short-term horizon. The downward bias in the pair should mitigate once it clears the June high at 1.1012.

That said, the loss of the weekly low at 1.0833 (July 6) could pave the way to a test of the transitory 100-day SMA at 0824. The breakdown of the latter should meet the next contention area not before the May low of 1.0635 (May 31) ahead of the March low of 1.0516 (March 15) and the 2023 low of 1.0481 (January 6).

If bulls regain the upper hand, the next hurdle is then expected at the June peak of 1.1012 (June 22) prior to the 2023 high of 1.1095 (April 26), which is closely followed by the round level of 1.1100. North from here emerges the weekly top of 1.1184 (March 31, 2022), which is supported by the 200-week SMA at 1.1180, just before another round level at 1.1200.

The constructive view of EUR/USD appears unchanged as long as the pair trades above the crucial 200-day SMA, today at 0613.

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