Initial Jobless Claims Drop Below 1 Million – EURUSD Unfazed


EURUSD regains the positive momentum today as the pair trades higher for the second straight day, and attempts a move up to the two-year highs despite the better than expected initial jobless claims. The deadlock in stimulus negotiations continues to put pressure on the greenback.  

U.S. Weekly Jobless Claims Beat Forecasts

The United States Initial Jobless Claims reported at 963K, below the forecasts of 1120K on August 7; that was the first reading below one million since March 21. The Initial Jobless Claims 4-week average dropped to 1252.75K on August 7 from 1337.75K in the previous week. The Continuing Jobless Claims came in at 15.486M, also below the estimates of 15.898M in the week of July 31. 

On other data the U.S. Export Price Index registered in at 0.8%, beating the expectations of 0.6% in July, while the Import Price Index came in at 0.7%, topping the forecasts of 0.4%. 

From Europe, the Germany Consumer Price Index (CPI) registered in at -0.5% in line with the forecasts for July, the yearly Consumer Price Index also matched the estimates at -0.1%. The Harmonized Index of Consumer Prices reported at 0%. An IFO survey showed that German companies expect the business environment to return to normality in 11 months from now. 

Meanwhile, President Trump came out with a comment saying that he made the USD strong and it will make it stronger during his second term in office. 

EURUSD Price Technical Analysis 

EURUSD is 0.47% higher at 1.1839 despite the positive economic data from USA. The recent correction helped the pair to exit the overbought area. 

Looking at the daily chart, intraday resistance is at 1.1853 today’s high. If the pair breaks higher then the next hurdle stands at 1.1877 the high from August 7 while more selling pressure would be met at 1.1914 the high from August 6. 

Looking south, first support stands at 1.1777 the daily lows. More buyers would wait at 1.1712 the low from yesterday’s trading session. Below that level bears would target 1.1634 the low from July 27. 

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EURUSD Daily Chart

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