The Euro (EUR) inched higher against the US Dollar (USD) on Wednesday, this caused an increase in the price of EURUSD, bringing it to a total of more than 1.1300. The price of the pair increased after major economic news released. Considering the price movement of the pair over the last few days, it is anticipated that the technical bias may turn bullish because the pair’s price marked a higher high in the recent upside move.
EUR/USD Technical Analysis
Currently, the pair is being traded around 1.1375, a resistance can be seen around 1.1401, the 38.2% Fib level resistance ahead of 1.1441, the confluence of a trendline and horizontal resistance level and then comes 1.1569, the major horizontal resistance.
Talking about the downside, a support can be seen around 1.1312, the 23.6% fib level support ahead of 1.1300, the psychological number and then 1.1233, the key horizontal support which is likely to prevent the price from decreasing further as demonstrated in the given above chart. The technical bias may remain bearish as long as 1.1370, the major horizontal resistance level remains intact.
Nonfarm Productivity News – United States
In the United States, the figure with respect to the nonfarm productivity remained 2.9% in the 2nd quarter this year, as compared to 2.9% during the quarter before, down beating the economist expectation which was 3.0%. The data is copied from the news released by the Bureau of Labor Statistics Department of Labor, United States.
The data represents the output level yielded by the labor force in an hour. The data is considered a good indicator of the overall market condition of the businesses in the US. It also affects GDP. Generally speaking a high reading in this regard is considered as a bullish or upward trend for the US Dollar (USD) whereas low reading indicates a downward trend or bearish market for the US Dollar (USD).
Trade Idea
Considering the overall price behavior of the pair over the last couple of days, buying the EURUSD around current levels can be a good decision in short to medium term.