EUR/USD analysis: holding at lows, bearish

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1787

US employment data encouraging ahead of NFP report.
Soft opening seen for US equities as European wobble around their opening levels.

The EUR/USD pair is down for a third consecutive day and at its lowest in two weeks, unable to regain the 1.1800 level after breaking below it late Wednesday. Despite a limited intraday range and low volatility, the pair has managed to post a lower low today of 1.1775 and holds barely above it ahead of Wall Street's opening. The EU released its final version of Q3 GDP earlier today, confirmed at 0.6% for the three months to September, but revised up to 2.6% on yearly basis. In the US, companies announced plans to cut 35,038 jobs in November, well above October's 29,831, also well above November 2016 level, although for the year, employers announced just over 386,347 layoffs, the lowest since 1997. Also, weekly jobless claims fell to 236K in the week ended December 1st, below the previous 238K or the expected 240K.

The pair retains its bearish stance short-term, as in the 4 hours chart, the price remains below its 20 and 100 SMAs, with the shortest crossing below the largest, also below the 61.8% retracement of its latest rally at 1.1800, the immediate resistance. Technical indicators in the mentioned chart held within negative territory, but lost their bearish strength, amid the limited intraday range. Nevertheless, the risk remains towards the downside with 1.1750 being now the immediate support ahead of the 1.1720 price zone.

Support levels: 1.1750 1.1720 1.1690

Resistance levels: 1.1800 1.1830 1.1860

View Live Chart for the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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