EUR/USD Accelerates Slide to 1.1400 Handle
In last one hour, the EUR/USD
pair accelerated its fall and dropped to session low near 1.1400
handle, despite higher-than-expected weekly jobless claims data from the
US.
Although the number of people applying for unemployment
related benefits rose by 17,000 to 274,000, it still remained closed to a
nearly 16-year low in late April. Today's number remain consistent with
the underlying strength in the US labor market, which is likely to be
supportive for the US Dollar as it increases the possibilities of a Fed
rate hike, sooner rather than later.
The pair stretched its
losing streak for third straight day, erasing over 200-pips of it's
up-move from the recent peak of 1.1616 touched during the early part of
the week. The pair has now dropped back to April month daily closing
high level resistance.
The recent bout of US Dollar strength
might continue to gain traction ahead of the closely watched monthly
jobs report for April, slated for release on Friday.
Technical levels to watch
The
pair now seems to be on a verge of a break-down, which would be
confirmed if the pair convincingly breaks below 1.1400 handle. Weakness
below 1.1400 level is likely to accelerate the fall towards an important
support confluence near 1.1350 level, comprising of 20-day SMA and
23.6% Fibonacci retracement level of 1.0522-1.01616 sharp up-move. A
decisive break through 1.1350 support now seems to open room for further
corrective move in the near-term.
On the flip side, 1.1450-55
area now seems to act as immediate hurdle, which if cleared should make a
move back towards 1.1500 handle. On a sustained strength above 1.1500
mark, the pair seems more likely to surpass 1.1550-50 intermediate
resistance and headed towards reclaiming 1.1600 round figure mark.
