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EURUSD Looks Set for Gains

Key Points

  • Euro gained bids during the past couple of hours, as the US Dollar moved lower.
  • US Initial Jobless Claims released by the US Department of Labor came in at 276K, whereas the market was expecting a decline to 270K.
  • US continuing jobless claims came below the forecast and registered a reading of 2.174M.
  • In Canada, the New Housing Price Index (NHPI) released by the Statistics Canada increased by 0.1%, lower than the forecast of a 0.2% rise.

Technical Analysis

The EURUSD pair traded with a bullish tone recently, and managed to clear an important bearish trend line on the 4-hours chart. The pair also breached the 23.6% Fib retracement level of the last drop from the 1.1072 high.


It looks like the pair might trade higher and test the 50 simple moving average on the 4-hours chart.

The broken trend line may act as a support area in the near term.

US Initial Jobless Claims

Earlier during the NY session, there were some key releases in the US, including the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance was reported by the US Department of Labor. The forecast was lined up for decreased from the last reading of 276K to 270K (advance figure for seasonally adjusted). However, the result was lower, as the US initial jobless claims failed to decrease and stayed at 276K. The report stated that the 4-week moving average was 267,750, i.e. 5,000 more than compared to the previous week’s unrevised average.

The US continuing jobless claims data was also on the disappointing side, as there as an increase to 2.174M, whereas the market was expecting 2.160M.

The US Dollar moved a bit lower after the release. The EURUSD seems to be taking advantage of it and might continue to trade higher.

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