EURUSD Gains Momentum After US Job Data

The Euro (EUR) inched higher against the US Dollar (USD) on Friday, increasing the price of EURUSD to more than 1.1400 following some key economic events. The technical bias has turned bullish because of a higher high in the recent upside rally.

Technical Analysis

As of this writing, the pair is being traded near 1.1410. A hurdle may be noted around 1.1425 (a short-term horizontal resistance area as well as psychological number) ahead of 1.1445 (the high of the recent upside wave) and then 1.1500 (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.

US Jobless Claims News

The number of people who filed for unemployment assistance in the U.S. last week fell less than expected, but remained in territory consistent with a strengthening labor market, official data showed on Thursday.

The number of individuals filing for initial jobless benefits in the week ending July 8 decreased by 3,000 to a seasonally adjusted 247,000 from the previous week’s revised total of 250,000, the U.S. Department of Labor said.

Analysts expected jobless claims to fall by 5,000 to 245,000 last week.

The four-week moving average was 245,750, up 2,250 from the previous week. The monthly average is seen as a more accurate gauge of labor trends because it reduces volatility in the week-to-week data.

Trade Idea

Considering the overall technical and fundamental outlook, buying 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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