EUR/USD pares 0.3% advance to trade little changed at 1.1614

The EUR/USD currency pair pared a 0.3% advance to trade near 1.1614 on Thursday, stabilizing after a rebound from session lows of 1.1586. The pair showed signs of a potential double-bottom reversal pattern on the 60-minute chart, though it remained below the 100-hour moving average. The move prevented the RSI from entering oversold territory, suggesting short-term technical support.

Fundamentally, the pair's performance coincided with heightened U.S. political uncertainty, as a government shutdown entered its second week, delaying payments for federal workers. U.S. economic data, including a modest rise in existing home sales and improved mortgage applications, offered mixed signals. Meanwhile, Eurozone data showed Germany's producer prices fell short of expectations, though year-over-year declines narrowed, hinting at easing inflationary pressures.

Looking ahead, market focus shifted to Friday's release of the Eurozone's preliminary October PMI data and the U.S. Nonfarm Payrolls (NFP) report, which could influence Fed policy expectations. The EUR/USD remained in a descending channel on the daily chart, with bears targeting 1.1501 and bulls eyeing 1.1723 as key levels. The U.S. Dollar Index (DXY) hovered near a three-month high, reflecting broader dollar strength amid cautious positioning ahead of critical employment data.

Historically, the pair has traded within a 52-week range of 1.0732 to 1.2079, with today's range narrowing to 1.1607–1.1668. Analysts emphasized that NFP outcomes, particularly wage growth and unemployment trends, would likely dictate near-term EUR/USD direction, with the Fed's policy trajectory remaining a pivotal factor.