Euro Tests Key Resistance Amid Important Economic Data

Euro (EUR) extended upside movement against the US Dollar (USD) on Friday, increasing the price of EURUSD to more than 1.1300 amid some key economic releases. The technical bias remains bullish because of a Higher Low in the recent downside move on the daily timeframe.

Technical Analysis

As of this writing, the pair is being traded near 1.1318. A hurdle may be noted near 1.1376, the swing high of the last major upside rally ahead of 1.1400, the psychological number and then 1.1495, the swing high of the October 2015 as demonstrated in the following daily chart.

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On the downside, the pair is likely to find a support near 1.1205, the intraday low of yesterday ahead of 1.1058. a major horizontal support and then 1.1000, the psychological number. The technical bias will remain bullish as long as the 1.1376 resistance area is intact.

US Jobless Claims

Fewer Americans than forecast filed applications for unemployment benefits last week, illustrating the Federal Reserve’s view of a stronger labor market. Initial jobless claims climbed by 7,000 to 265,000 in the week ended March 12, a report from the Labor Department showed on Thursday. Last week also coincided with the period that the government surveys businesses and households to calculate payrolls and the jobless rate for March. The report shows that companies are not only hiring more workers but also retaining the ones they already have to handle demand.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels could be a good strategy if we get a valid bearish reversal candle on the daily chart.

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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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