- – The Euro is in a major uptrend and is currently trading above 1.2220 against the US Dollar.
- – There is a crucial bullish trend line forming with current support at 1.2240 on the hourly chart of EUR/USD.
- – Recently in the US, the Initial Jobless Claims figure for the week ending Jan 13, 2017 was released by the US Department of Labor.
- – The outcome was above the forecast of 250K as there was a decline in claims from 261K to 220K.
US Initial Jobless Claims
Recently in the US, the Initial Jobless Claims figure for the week ending Jan 13, 2017 was released by the US Department of Labor. The market was looking for a decrease in claims from the last reading of 261K to 250K.
The actual result was above the forecast of 250K as there was a decline in claims from 261K to 220K. On the other hand, the Counting Jobless Claims came in at 1.952M, a bit more than the forecast of 1.900M. The report added that:
The advance number for seasonally adjusted insured unemployment during the week ending January 6 was 1,952,000, an increase of 76,000 from the previous week’s revised level.
The EUR/USD pair declined a few pips after the release, but the pair remained supported above the 1.2200-1.2240 support area.
EUR/USD Technical Analysis
The Euro made a nice upside move and traded above the 1.2100 resistance level against the US Dollar. The EUR/USD pair gained solid upside pace to clear the 1.2250 resistance and the 100 hourly simple moving average.
The upside move was strong and the pair traded as high as 1.2322 before starting a downside correction. It traded as low as 1.2169 and is currently moving back higher. On the downside, a crucial bullish trend line is providing support at 1.2240 on the hourly chart.
Recently, the pair broke a short-term connecting bearish trend line at 1.2240. Moreover, it broke the 50% Fib retracement level of the last decline from the 1.2325 high to 1.2169 low. It has opened the doors for more gains in the near term above 1.2300.
The pair will most likely break the 1.2300 resistance and gain pace towards 1.2325 as long as it is above the 1.2240 support area.Tags: EUR/USD, EUR/USD Technical Analysis, Euro, US Dollar