The Euro (EUR) plunged down against the US Dollar (USD) on Wednesday, this caused a decrease in the price of EURUSD, bringing it to less than 1.1300. The price of the pair decreased 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 1.1254, a support can be seen around 1.1182, the 61.8% Fib level support ahead of 1.111, the trendline support and then 1.0336, the key horizontal support which is likely to prevent the price from decreasing further as demonstrated in the given below chart.
Talking about the upside, a resistance can be seen around 1.1499, the major horizontal resistance level ahead of 1.1700, the 38.2% Fib level resistance and then comes 1.1718, the trendline resistance in the given above chart. The technical bias may remain bearish as long as 1.1499, 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, selling the EURUSD around current levels can be a good decision in short to medium term.