The Euro (EUR) inched higher against the US Dollar (USD) on Wednesday, increasing the price of EURUSD to more than 1.1825 following some key economic events. The technical bias has however 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 1.1839. A hurdle may be noted around 1.1900 (a short-term horizontal resistance area as well as psychological number) ahead of 1.1876 (the low of 2010) and then 1.1900 (the psychological number).
On the downside, a support can be noted around 1.1332 (a key horizontal support) ahead of 1.0839 (the low of the last major downside move) and then 1.0800 (the confluence of horizontal support as well as psychological number) as demonstrated in the given above chart. The technical bias shall remain bullish as long as the 1.0839 support area is intact.
The number of unemployed persons in Germany ticked down by 9000 in July, helping the jobless rate hold steady at a historic low of 5.7 per cent.
Monthly jobless queues in Europe’s biggest economy contracted for the ninth consecutive month to 2.537 million people in seasonally adjusted terms, the Federal Labour Agency said on Tuesday.
Analysts had expected the data to show unemployment falling by 5000.
At 5.7 per cent, the July jobless rate remains at its lowest level since German unification in 1990.
Considering the overall technical and fundamental outlook, buying the pair around current levels may be a good strategy in short to medium term.
EUR/USD forecast on FXOpen website.