• EUR/USD retreats from the 1.1370 as market sentiment deteriorates.
  • US Initial Jobless Claims came in better than expected but were largely ignored.
  • The pair needs to hold above 20-day SMA to keep focus on the upside.

After reaching a fresh four-week high during the Asian session at 1.1370, EUR/USD came under pressure and accelerated to the downside in the New York trade, turning negative for the day. A bout of dollar demand, a retreat in Wall Street indexes made the market mood swing evident. Renewed concerns about the COVID-19 pandemic, coupled with a Supreme Court ruling granting access to a New York Prosecutor to US President Donald Trump's tax returns, cast a shadow over investors.

US data failed to boost market mood and went largely unnoticed. There were 1,314,000 initial claims for unemployment benefits in the US during the week ending July 4th, following the previous week's print of 1,413,000 (revised from 1,427,000) and slightly better than the market expectation of 1,375,000.

The EUR/USD pair retreated sharply from its daily peak of 1.1370 and slid back below the 1.1300 mark. The pullback also sent the pair back below a descending trendline coming from February 2018 highs, questioning bulls' ability to sustain the upmove. The short-term technical picture has deteriorated, with indicators falling below their mid-lines in the 4-hour chart. However, the bias remains slightly bullish in the daily chart, with 1.1400 as the next target. The EUR/USD needs to hold above the 20-day SMA at 1.1255 to keep focus on the upside, while a loss of this level could point to a deeper correction to the 1.1190-70 area.  

Support levels: 1.1255 1.1190 1.1168

Resistance levels: 1.1370 1.1400 1.1422

View Live Chart for the EUR/USD

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.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD: At risk of extending its slide

The greenback closed the week appreciating against most major rivals, although EUR/USD settled in the 1.1780 price zone, holding on to modest weekly gains. EUR/USD decline corrective on the broader view but could extend its slump in the shorter-term.


GBP/USD: Limited bearish potential

The GBP/USD pair finished the week with modest losses at 1.3050, giving up to the dollar’s demand at the end of the week. The Cable is trading above the 1.3000 level, which limits the bearish potential.


Gold: Acceptance above $2050 critical to revive the uptrend

Gold’s record-breaking rally could resume on a sustained move above $2050. RSI on 4H chart stays in the bullish territory, pointing to the upside. XAU bulls to buy the dips around $2010 in the week ahead?

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News

Forex Majors