EUR/USD Forecast: Technical buyers could show interest once 1.0800 turns into support

• EUR/USD edges higher toward 1.0800 after posting marginal gains on Wednesday.
• The near-term technical outlook points to a bullish tilt.
• A significant increase in US Initial Jobless Claims could hurt the USD.

EUR/USD registered small gains on Wednesday and continued to push higher toward 1.0800 early Thursday. Although the pair’s near-term technical outlook highlights a bullish tilt, technical buyers could stay on the sidelines until 1.0800 is confirmed as support.

Improving risk mood made it difficult for the US Dollar (USD) to find demand on Wednesday but a late recovery in US Treasury bond yields helped the currency limit its losses, capping EUR/USD’s upside.

Meanwhile, European Central Bank (ECB) policymakers continue to push back against market expectations for an early policy pivot and support the Euro. ECB Executive Board member Isabel Schnabel said that they must remain patient and cautious on risks of inflation flaring up again. Similarly, Governing Council member Boris Vujcic argued that they shouldn’t rush to lower rates, citing resilience in services inflation and wages.