- The Euro failed to maintain gains and traded lower against the US Dollar.
- There was a major support trend line formed on the hourly chart, which was broken to clear the way for more losses.
- The EURUSD is now well below the 100, 200 and 50 hourly simple moving average, which is a sign that sellers are in control.
- In the US, the Initial Jobless Claims will be published by the US Department of Labor with a forecast of a rise in claims from 267K to 270K.
The EURUSD pair failed to hold a major support trend line formed on the hourly chart, which resulted in a sharp downside move. The pair traded below the 1.0900 support area and may be heading towards the 1.0870 level.
As mentioned there are a lot of bearish signs on the hourly chart, including the fact that the pair is below the 100, 200 and 50 simple moving average.
If the EURUSD pair corrects higher from the current levels, then the broken trend line may act as a resistance.
US Initial Jobless Claims
In about 30 minutes, the US Initial Jobless Claims, measuring the number of people filing first-time claims for state unemployment insurance will be reported by the US Department of Labor. The market is expecting a rise in the claims from the last reading of 267K to 270K. If the claims do not rise, then the US Dollar may gain some ground moving ahead.
There may be very less market movements during the remaining part of this week due to the holiday period. Let us see how the market behaves during this period.
In short, the EURUSD remains at a risk of more declines, and as long as the pair is below 100 MA more losses are likely.