The US dollar failed to extend the recent advance and turned lower on Thursday after three days of gains. The USD index encountered resistance around 102.75 to settle just above the 102.00 figure as the New York session began. However, the downside potential could be limited in the short term, especially as risk demand seems to be waning again.
Following an early ascent, US stock index futures turned slightly lower as Microsoft (NASDAQ:MSFT) shares fell in pre-market trading in a knee-jerk reaction to the updated guidance for the fourth quarter. The tech giant now sees revenue at $51.94-$52.74 billion compared to the consensus of $52.87 billion. EPS is now seen at $2.24-2.32 compared to the consensus at $2.33.
EUR/USD - Technical View
Meanwhile, EUR/USD is clinging to the upper end of the trading range, flirting with the 1.0700 figure during the European trading hours on Thursday. The recent slide was capped by the 20-DMA, pushing the pair back into positive territory as the dollar retreated across the board. Still, the common currency is unlikely to regain the 1.0800 figure anytime soon as traders remain cautious ahead of Friday’s nonfarm payrolls report that will set the tone for USD pairs ahead of the weekend.
USD/JPY - Technical View
Elsewhere, USD/JPY failed to hold above the 130.00 mark to come under renewed selling pressure today. Earlier in the day, the dollar briefly rallied to May 11 highs around 130.23 and could revisit this zone after a short-lived correction that could attract buyers somewhere around the 20-DMA, currently at 128.65. A daily close above 130.00 would bring the market focus back to twenty-year tops registered in the 131.35 zone last month.
