In the Asian session on Thursday, the EUR/USD declined to 0.97, trimming the previous day’s recovery from a 20-year low. The pair reverses its breach of 0.9600 and decreases its biggest daily gain since March.

The EUR/USD pair trades near 0.9740 at the end of the American trading day, up from 0.9535. Statements from US legislators supported the dollar’s early advances. In denial of a currency adjustment, White House economic adviser Brian Deese claimed that the USD’s strength represents the US economy. Market fluctuations, according to Janet Yellen, are not cause for concern.

Later, before Wall Street opened, profit-taking was heightened by the positive tone of the equity market and falling US bond yields.

Market participants from European Central Bank President Christine Lagarde that interest rates would continue to rise. Martins Kazaks, the governor of the Bank of Latvia, and Peter Kazimir backed a 75 basis point rate increase in October.

The Gfk Consumer Confidence Survey for Germany dropped from -36.8 to -42.5 in October. In August, the US saw a lower-than-anticipated $87.3 billion goods trade deficit, although wholesale inventories increased 1.3%. Lastly, pending home sales decreased by 2%.

Germany’s September CPI and the EU’s September Economic Sentiment Indicator will release on Thursday. The shared currency may be affected by the 9.4% YoY inflation. Both the weekly unemployment rate and the final Q2 GDP will be public.

Conclusion

Technical evidence points to highly oversold conditions, but there are no indications of a bounce in the EUR/USD pair. Technical indicators on the daily chart haven’t calmed down inside of extreme levels, and the pair is still considerably below bearish moving averages.