The EUR/USD whipsawed on Thursday, surrendering earlier gains and falling back to the 1.0850 region. Investor optimism following the Fed’s decision proved short-lived, and mixed European PMI data weighed on the Euro.

Key Factors:

• Weaker European PMI: Disappointing German Manufacturing PMI figures and a miss for the pan-European PMI dampened Euro sentiment.
• Mixed US Data: While the US Composite PMI edged lower, a decline in the US Services PMI bolstered safe-haven demand for the US Dollar.
• Fed Focus: Investors await Friday’s speeches by Fed members, including Chair Powell, for clues on the policy outlook.

Technical Outlook:

• EUR/USD Stumbles: The pair fell sharply from the day’s high of 1.09426, settling near 1.0857.
• Resistance at 200-period EMA: The EUR/USD faces resistance near the 1.0864 level.
• Bearish Signal: Thursday’s reversal suggests a potential lower high formation on the 4-hour chart.