(RTTNews) - The euro was stable versus the dollar and yen on Thursday, as another mildly encouraging U.S. jobless claims report raised hopes the world's largest economy can escape a double-dip recession.

The euro has been resilient this week despite lingering concerns about the European banking system and sovereign debt.

After rising to 1.2760 versus the dollar, up about a penny from its overnight levels, the euro tailed off to 1.2725 approaching mid-day in New York.

The pre-planned short positions from key resistance range levels have been implemented with attainment of minimal anticipated target. OsMA trend indicator, having marked parity of both party activity as a result of the previous trading day, suggests further rate range movement with no clear signs regarding planning priorities for today. Therefore, considering descending direction of indicator chart, we can assume probability of rate return to 1,2660/80 supports, where it is recommended to evaluate the development of the activity of both parties in accordance with the charts of a shorter time interval. As for short-term buying positions, on condition of the formation of topping signals the targets will be 1,2720/40, 1,2780/1,2800 and (or) further break-out variant up to 1,2840/60, 1,2900/20. The alternative for sales will be below 1,2580 with the targets of 1,2520/40, 1,2460/80.

Former support around 1.2770 was tested and held, as I was expecting in my article yesterday, and downside pressure remains high. Euro's come back after the 1.2770 attempt was probably caused by ECB chief economist Juergen Stark who said that German banks need more capital. Support trend line coming from 1.2585, connecting the weekly lows until now, is again in focus. Potential breakdown should offer a fresh selling opportunity - aiming towards 1.2500. On the upside, same 1.2770 is where to look for a confirmation if the euro recovers, but for now - the downside remains favored. Today's most important events in the economic calendar are the German CPI, ECB monthly report, Trade Balance and Initial Jobless Claims later today, in the U.S. Current quote is 1.2703 @05:33 GMT

Being supported by a rising trend line on 4-hour chart, EURUSD rebounded from 1.2659, suggesting that a cycle bottom is being formed. Another rise to re-test 1.2921 resistance would more likely be seen. Support is now at 1.2659, only break below this level could trigger another fall towards 1.2587 previous low.