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EUR/USD clings to gains after US jobless claims

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - EUR/USD extended gains above 1.0800 and climbed to 3-day highs on Thursday as the euro somehow managed to benefit from the risk aversion mood and upbeat economic data coming from the Eurozone.

    EUR/USD broke above the 50-day SMA (1.0820) and stretched to a high of 1.0874, before losing momentum ahead of the 10-day SMA (1.0876). The pair remained near highs after data showed US initial jobless claims fell to 277K in the week ended Jan 2, slightly above the 275K expected. At time of writing, the pair is trading at 1.0862, recording a 0.77% gain on the day.

    Following three days of losses EUR/USD found tough support at the 1.0710 zone on Tuesday and changed course, also underpinned by the FOMC minutes, which showed for some members Dec rate hike was a close call and expressed significant concern over low inflation.

    EUR/USD levels to watch

    As for technical levels, if EUR/USD breaks above the 1.0874/76 area (Jan 7 high/10-day SMA), next resistances are seen at 1.0905 (20-day SMA) and 1.0990 (Dec 28 & 29 highs). On the other hand, immediate supports could be found at 1.0820 (50-day SMA), 1.0770 (Jan 7 low) and 1.0710 (Jan 5 low).
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