The Euro (EUR) inched higher against the US Dollar (USD) on Monday, increasing the price of EURUSD to more than 1.2250 following some key economic releases. The technical bias remains bullish because of the higher high in the recent upside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.2272. A resistance can be noted around 1.2315, A horizontal resistance level ahead of 1.2456, a trendline resistance and then 1.2555, the major horizontal resistance area as demonstrated in the given below chart.
On the downside, a support can be noted near 1.2177, the 38.2% Fib level support ahead of 1.2000, the psychological number and then 1.1935, the high of December 1st, 2017 as demonstrated in the given above chart. The technical bias may turn bullish if it breaks the 1.2478 resistance level.
US Job Data
New applications for U.S. unemployment benefits fell last week, pointing to sustained labor market strength despite a sharp slowdown in job growth in March.
Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 233,000 for the week ended April 7, the Labor Department said. Economists polled by Reuters had forecast claims falling to 230,000 in the latest week.
The economy created 103,000 jobs in March, the fewest in six months. Economists largely dismissed the slowdown as payback after hefty job gains in February. They also blamed cooler temperatures for the moderation in hiring.
Trade Idea
Considering the overall price behavior of the pair over last few weeks, buying the EURUSD around current levels can proved to be a good decision in short to medium term.