The EUR /USD pair declined sharply on Thursday as euro was weighed down by a stronger dollar as investors began to assess the potential for another U.S. rate hike later in the year, supported by data showing a strong U.S…
The EUR /USD pair declined sharply on Thursday as euro was weighed down by a stronger dollar as investors began to assess the potential for another U.S. rate hike later in the year, supported by data showing a strong U.S. jobs market.
U.S. data on Thursday bolstered the case for higher rates, as the number of Americans filing for unemployment benefits fell more than expected last week, pointing to shrinking labour market slack.
The U.S. Federal Reserve raised interest rates by a notch as expected on Wednesday and indicated further tightening before the end of the year.
The ongoing weakness is set to continue for this pair as the resistance level at 1.1248 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.1186, a break above this level would expose the pair to next resistance level at 1.1248.
To the downside, immediate support can be seen at 1.1124, a break below at this level will open the door towards next level at 1.1092.
