EURUSD holds near one month high

As mixed data provided no clear direction, the markets remain quiet On Thursday ahead of the initial jobless claims data due to release later today, which will be a warmup for tomorrow's NFP data after a red flag on ADP yesterday.

Last week, Federal Reserve Chair, Jerome Powell, highlighted the improving US employment as a sign of undertaking the tempering of the Fed's monetary policy, adding to the importance of tomorrow's nonfarm payroll report.

Following ADP's announcement that US private-sector jobs were up only 374,000, markets responded by predicting the all-important Nonfarm Payrolls would come in lower than expected. Even if weekly jobless claims are set to drop, the dollar is expected to keep under pressure.

Nevertheless, data has supported Euro According to new figures released on Thursday, factory gate prices in the eurozone climbed 2.3% MOM, representing a 12.1% raise annually, far above projections. In addition, inflation rose 3% annually in August, the highest in a decade.

EURUSD, in a four-hour time frame, is trading near the one month high at 1.18500 in an upward channel. However, it could be struggling for the pair to extend the current rally further, given the ECB's indication in recent guidance that it will continue to purchase assets until rate hikes are necessary.

As price action suggests, if the positive momentum persists, the price would keep going up toward the first immediate target at 1.18760 around the upper line of the channel. Alternatively, the uptrend will be reversed if sellers break through the support level at 1.17925.