EURUSD Remains Vulnerable amid US Jobless Claims Data

The Euro (EUR) inched lower against the US Dollar (USD) on Friday, decreasing the price of EURUSD to less than 1.1700 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 1.1640. 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 below chart.

eurusddaily

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.

US Jobless Claims

The number of people who filed for unemployment assistance in the U.S. last week fell unexpectedly, staying close to the lowest level in four decades, official data showed on Thursday.

The number of individuals filing for initial jobless benefits in the week ending Oct. 28 decreased by 5,000 to a seasonally adjusted 229,000 from the previous week’s total of 234,000, the U.S. Department of Labor said.

Analysts expected jobless claims to rise by 1,000 to 235,000 last week. The four-week moving average was 232,500, down 7,250 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, 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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