EUR/USD extends gains above 1.1200 after US data

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - EUR/USD broke above 1.1200 and extended gains to fresh 3 ½-month highs following the release of the latest string of US data.

    US initial jobless claims rose by 7,000 to 285,000 in the week ended January 29, versus 280,000 expected. Meanwhile Q4 labor costs climbed by 4.5%, against 3.9% expected while nonfarm productivity dropped by 3.0%, versus a decline of 1.8% of consensus.

    The dollar weakened further and EUR/USD climbed to its highest level since Oct 22 at 1.1238 immediately after the release. At time of writing, the pair is trading at 1.1218, recording a 1.04% so far today.

    Later on the session, US factory orders for December will be released, although main attention remains on tomorrow’s nonfarm payrolls report.

    EUR/USD levels to watch

    As for technical levels, immediate resistances are seen at 1.1298/1.1300 (23.6% Fibo retracement of 1.3993-1.0462/psychological level), 1.1385 (Oct 20 high). Meanwhile supports could be found at 1.1055 (200-day SMA), 1.0967 (100-day SMA) and 1.0909 (20-day SMA).
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