EUR/USD analysis: holding on to gains, despite another round of solid US data
EUR/USD Current price: 1.0658
The greenback closed the day mixed across the board, lower against the EUR and the JPY, as a decline in worldwide stocks added to the early downward correction of the American currency, despite the release of upbeat economic data and a hawkish Yellen. There was no fundamental trigger behind dollar's retracement, although it is a clear indication on how soft confidence on Trump´s promises is, and how willing investors are to take profits out on dollar's gains these days, after the US president complained about dollar's strength.
There were no relevant news coming from the EU, while figures coming from the US were generally positive, as weekly unemployment claims for the week ending February 10 printed 239K, better than the 245K expected, although the 4-week average was 245,250, an increase of 500 from the previous week's revised average. Housing starts in December rose to 1.246M, while Building Permits reached 1.285M, both beating expectations and previously upwardly revised figures.
The EUR/USD pair pared gains at 1.0678, and settled around 1.0660, and the 4 hours chart shows that the price is well above a flat 20 SMA currently at 1.0600, but still below a modestly bearish 100 SMA around 1.0700. In the same chart, technical indicators have turned lower within positive territory, not enough to suggest a downward move for this Friday, but putting a cap to the upward move. The pair has a major resistance at 1.0700/20, the level to beat to confirm further dollar losses in this last day of the week.
Support levels: 1.0620 1.0590 1.0565
Resistance levels: 1.0710 1.0750 1.0795
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.
