EUR/USD Forecast: Euro remains fragile ahead of key data releases

• EUR/USD rebounded modestly after testing 1.0900 on Wednesday.
• German inflation and employment-related data from the US will be watched closely.
• Near-term technical outlook doesn’t yet point to a build-up of recovery momentum.

EUR/USD staged a technical correction and stabilized below 1.0950 early Thursday after testing 1.0900 on Wednesday. The pair’s technical outlook is yet to point to an extended recovery as investors remain cautious while waiting for key macroeconomic data releases.

The US Dollar (USD) benefited from the cautious market stance mid-week and continued to outperform the Euro. Meanwhile, the relatively hawkish tone seen in the minutes of the Federal Reserve’s (Fed) December meeting minutes helped the currency hold its ground later in the American session.