EURUSD Analysis
| Performance after Thursday | |||||
| Period | Pct | Chg | Momentum | ||
| Thursday | -0.87% | -90.2 Pips |  |
||
| Week to-date | -1.6% | -166.6 Pips | |
||
| January | -1.38% | -143.4 Pips |  |
||
Upcoming key events (London Time)
No major events for the day.
What happened lately
In the United States, the Department of Labor reported that for the week ending 28 December, initial unemployment insurance claims decreased to 211,000 from the previous figure of 220,000, which was revised from 219,000. This reduction in jobless claims suggests an improvement in the U.S. labor market, indicating that fewer individuals are filing for unemployment benefits. Such data points to a stronger economy as it implies more stability in employment, which could bolster consumer confidence and potentially spur consumer spending. Overall, this positive labor market indicator could increase optimism about the economic outlook in the U.S.
The recent economic data from the United States has implications for the EUR/USD exchange rate. Following the release of the lower U.S. unemployment claims, the Euro weakened against the Dollar, leading to a drop of -0.87% in the EUR/USD pair, bringing the exchange rate to 1.02628. A strengthened labor market in the United States typically implies a stronger Dollar, as it signals economic resilience which could lead to expectations of a tighter monetary policy by the Federal Reserve. This often results in investors favoring the Dollar over the Euro, applying downward pressure on the EUR/USD rate. With no major economic events scheduled, the market’s reaction may continue to reflect the impact of the recent U.S. data and sentiments regarding the comparative strengths of the two economies.
Latest from X (Twitter)
What can we expect from EURUSD today?
EURUSD on Thursday dropped -0.87% to 1.02628. Price is below 9-Day EMA while Stochastic is falling.
Updated daily direction for EURUSD looks bearish as the pair posted lower in Thursday trading session.
Looking ahead for the day, immediate support level is at S1 1.01992 with break below could see further selling pressure towards S2 at 1.01356. To the upside, with the current momentum bearish, we prefer to look at breakout of the recent daily high of 1.03756 as a potential indicator of buying interest. Failure to break the resistance level would continue to echo bearish sentiment. A close below 1.02238 would indicate selling pressure.
For the week to-date, take note that EURUSD is bearish as the pair posted lower by -1.6%.
Key levels to watch out:
| R3 | 1.05028 |
| R2 | 1.04392 |
| R1 | 1.0351 |
| Daily Pivot | 1.02874 |
| S1 | 1.01992 |
| S2 | 1.01356 |
| S3 | 1.00474 |
#EURUSD Trending on Twitter
[custom-twitter-feeds hashtag=”#EURUSD” num=3 showheader=false]