The Eurodollar experienced a knee-jerk bullish movement on Thursday, which came as quick as it went after rejecting the 1.1825 resistance level.
Meanwhile, the US Dollar Index (US DXY), a measure of its value against six major currencies, is holding steady at 92.85 after experiencing significant volatility over the past 24-hours.
So far this week, the US Dollar Index (US DXY) is set to post a small weekly gain.
The small rebound emerged after the release by the U.S. Labor Department of jobless claims after reporting the unemployment claims had risen last week to 419,000, the most in two months and more than economists expected, after missing the 350,000 forecasts, with the previous weekly release at 368,000.
On Thursday, the European Central Bank pledged to keep interest rates at record lows for even longer to boost sluggish inflation and warned that the rapidly spreading Delta variant of the coronavirus poses a risk to the euro zone’s recovery.
From a broader aspect, it is assessed that the US dollar remains strong in the coming weeks, given from the broader cycle (monthly basis).
Viewing the technical arrangement, the US Dollar (US DXY Index) engulfed candle has been negated due to the dragonfly doji.
Meanwhile, the Eurodollar rejection does cast some doubt of any upward attempts sustaining.
The Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative, while the Moving Average Convergence Divergence (MACD) holds a weak positive signal.
The Average Directional Movement Index (ADX) trend indicator suggests the presence of a bearish trend.
Eyes turn back to the 1.1750, which may expose the 1.1680 region if breached.