EUR/USD Price Analysis: Bears are moving in and daily lows are vulnerable

EUR/USD bears target the 1.0850 level.
Bears eye a move to test daily lows for the new month ahead.

Ross J Burland FXStreet

EUR/USD is on the back foot. The US Dollar index climbed to a two-week high on Thursday after economic data showed the labour market remained solid.

It's been a strong week of data for the US and was topped off with Weekly Initial Jobless claims that decreased 26,000 to a seasonally adjusted 239,000, the largest drop in 20 months and below the expectation of 265,000 by economists polled by Reuters. Federal Reserve's Chair Jerome Powell also indicated the central bank is likely to resume its rate hike path and this is weighing on the Euro as the following technical analysis illustrates with a focus on the 1.0850s:

EUR/USD daily chart

The current state of play is targeting the weak lows in 1.0635 as the Euro fails to make a higher high, so far.

EUR/USD H4 chart

1.0844 is a target on the 4-hout chart for the same, guarding the daily support areas below.

EUR/USD H1 charts

The hourly chart leaves 1.0850 vulnerable as a -272% Fibonacci of the recent bullish correction's range.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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