EUR/USD Forecast: Euro looks to extend recovery beyond 1.0700
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EUR/USD gained traction and closed in positive territory on Wednesday, snapping a six-day losing streak. The pair continues to inch higher toward 1.0700 in the European session on Thursday and the near-term technical outlook highlights a buildup of recovery momentum. The renewed US Dollar (USD) weakness helped EUR/USD stage a decisive rebound midweek. In the absence of high-tier data releases, retreating US Treasury bond yields weighed on the USD. The risk-positive market environment could help the pair push higher. The US economic docket will feature weekly Initial Jobless Claims data. Investors expect the number of first-time applications for unemployment benefits to rise to 215,000 in the week ending April 13 from 211,000. A reading close to 220,000 could put additional weight on the USD's shoulders. Markets remain optimistic about an avoidance of a deepening Iran-Israel conflict, with the UK, the EU and the US looking to widen sanctions against Iran. The Relative Strength Index (RSI) indicator on the 4-hour climbed above 50 for the first time in a week and closed the last five 4-hour candles about the 20-period Simple Moving Average (SMA), reflecting a buildup of recovery momentum. 1.0700 (psychological level, static level) aligns as immediate resistance before 1.0720-1.0730 (50-period SMA, static level) and 1.0760 (100-period SMA). On the downside, 1.0660 (static level, former resistance) could be seen as first support ahead of 1.0640 (20-period SMA) and 1.0600 (psychological level, static level).