Euro Inches Lower amid US Jobless Claims News

The Euro (EUR) inched lower against the US Dollar (USD) on Friday, decreasing the price of EURUSD to less than 1.2100 following some key economic events. The technical bias has turned bullish because of a higher high in the recent upside rally.

EUR/USD Technical Analysis

As of this writing, the pair is being traded near 1.2058. On the upside, a hurdle may be noted around 1.2100 (a short-term horizontal resistance area as well as psychological number) ahead of 1.2176 (a major horizontal resistance) and then 1.2200 (the psychological number). The technical bias shall remain bullish as long as the 1.0839 support area is intact.

On the downside, a support can be noted around 1.1632 (a key horizontal support) ahead of 1.1629 (the low of the last major downside move) and then 1.1600 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart.

US Jobless Claims Data

The number of Americans filing for unemployment benefits rose for a third straight week last week, but that likely does not suggest a material shift in labor market conditions as data for several states, including California, were estimated.

Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 250,000 for the week ended Dec. 30, the Labor Department said on Thursday. Economists polled by Reuters had forecast claims falling to 240,000 in the latest week. Claims tend to be volatile around holidays.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels may be a good strategy in short to medium term.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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