EURUSD – Euro Back Higher, Testing Resistance Vs Dollar
Aayush Jindal
EURUSD – Euro Back Higher, Testing Resistance Vs Dollar
Key Highlights
The Euro after trading as low as 1.0372 against the US Dollar started a recovery.
The EURUSD pair is trading with a positive bias, and settled above the 100 hourly simple moving average.
The pair is now approaching a resistance area near 1.0460-80.
Today, the US Initial Jobless Claims will be released by the US Department of Labor, which is forecasted to decrease from 275K to 264K.
EURUSD Technical Analysis
The Euro declined recentlyto trade as low as 1.0373 against the US Dollar. Later, the EURUSD pair started a recovery, and currently heading towards a major resistance area.During the recent upside move, the pair broke the 61.8% Fib retracement level of the last leg down from the 1.0479 high to 1.0373 low. So, there is a risk of more gains in the near term. The best part is the fact that the pair also moved above the 100 hourly simple moving average.However, there are couple of important resistance near 1.0460 and 1.0480. There is also a broken trend line, which is acting as a hurdle for further gains. A break above these resistances may clear the way for a test of the 1.0500 handle.
US Initial Jobless Claims
Today, the US will witness the release of the Initial Jobless Claims by the US Department of Labor. The market is aligned for a decrease in the number of people filing first-time claims for state unemployment insurance from 275K to 264K.If the outcome is lower, then there is a chance that the Euro may gain further traction in the near term, and challenge the 1.0480 resistance.Moreover, the Goods Trade Balance, which is the difference in value between imported and exported goods during a certain month will be released by the US Bureau of Economic Analysis and the U.S. Census Bureau.The market is aligned for a trade deficit of $-61.5B in Nov 2016. It is again an event that can impact the EURUSD pair in the short term.
During the recent upside move, the pair broke the 61.8% Fib retracement level of the last leg down from the 1.0479 high to 1.0373 low. So, there is a risk of more gains in the near term. The best part is the fact that the pair also moved above the 100 hourly simple moving average.However, there are couple of important resistance near 1.0460 and 1.0480. There is also a broken trend line, which is acting as a hurdle for further gains. A break above these resistances may clear the way for a test of the 1.0500 handle.