EUR/USD: struggling around 1.1100, but intrinsically bullish
|EUR/USD Current price: 1.1107
Euro buyers paused this Thursday, resulting in the EUR/USD pair correcting modestly lower after four days of strong gains. The pair reached 1.1171 during Asian trading hours, drifting lower afterwards, despite continued risk aversion. The absence of macroeconomic data during the London session favored the ongoing correction, now also backed by positive US data released ahead of Wall Street's opening. Weekly unemployment claims for the week ended May 12th were of 232,000 down 4,000 from the previous week and the lowest since 1973, indicating that the sector remains healthy. The Philadelphia Fed manufacturing survey, indicated that activity expanded at a faster-than-expected pace in May, with the survey jumping up to 38.8 from previous 22.0.
The pair is battling around 1.1100, clearly correcting lower in the short term, but with the dominant bullish trend firm in the background. Upcoming direction will solely depend on risk sentiment, although intraday technical readings favor further declines, given that in the 4 hours chart, technical indicators have turned sharply lower, leaving extreme overbought territory, whilst the price approaches is 20 SMA, heading north around 1.1080, providing a strong dynamic support. Below it, the next downward target comes at 1.1045, while in the case of a recovery, a break through the daily high should put the pair one step closer to 1.1260.
Support levels: 1.1080 1.1045 1.1000
Resistance levels: 1.11230 1.1170 1.1210
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.