• EURUSD recoups Thursday’s losses after disappointing US data

• A break above 1.0880 needed to confirm bullish signs

EURUSD turned green after the miss in the US weekly jobless claims and weaker job stats in the Philadelphia Fed manufacturing survey. The pair ran as high as 1.0880, erasing Wednesday’s pullback.

In terms of market trend, the pair seems to have completed a bullish flag formation in the four-hour chart, which is theoretically a sign that the upward trend will continue.

In technical indicators, the RSI and the MACD have started to lean on the downside, questioning whether the pair has enough power to revive its bull run. But the stochastic oscillator has just pivoted higher, increasing optimism for a potential recovery before the next downturn takes place.

If the bulls pierce above the two-month high of 1.0886, the next stop could occur somewhere between the 161.8% Fibonacci extension of the latest downside correction at 1.0920 and the 1.0940 barrier from August 2023. Breaking higher, the pair could stabilize within the 1.1000-1.1040 caution region.

A pullback below 1.0850 would signal a false bullish breakout, bringing the 1.0830 floor again on the radar. The 20-period exponential moving average (EMA) and the upper band of the broken bullish channel might help the pair to stay within the 1.0800 territory. Without a strong foundation there, the price could decline towards November’s high of 1.0755.

In short, the latest bullish breakout in EURUSD could keep buying interest intact as long as the price stays above 1.0850.