The Euro (EUR) inched lower against the US dollar (USD) on Friday, decreasing the price of EURUSD to less than 1.0675, following the release of some key economic news. The technical bias remains bearish because of the lower low and lower high in the recent downside move.
As of this writing, the pair is being traded around 1.0664. A support can be noted around 1.0600, a short term horizontal support ahead of 1.0500, the confluence of psychological number as well as critical support zone. A daily closing below the 1.0500 support area shall incite renewed selling pressure, validating a move towards the 1.0350 support zone.
On the upside, a hurdle can be noted near 1.0832, the confluence of trendline resistance area as well as 50% fib level as demonstrated in the given below daily chart. A break and daily closing above the 1.0832 resistance shall incite renewed buying interest, validating an upside rally towards the 1.0900 resistance zone.
US Jobless Claims
A report released by the Labor Department on Thursday showed a slight increase in first-time claims for U.S. unemployment benefits in the week ended February 11th.The report said initial jobless claims edged up to 239,000, an increase of 5,000 from the previous week’s unrevised level of 234,000. Economists had expected jobless claims to climb to 245,000. The modest rebound comes after jobless claims dropped to their lowest level in three months in the previous week.
Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.