FxWirePro: EUR/USD neutral in the near-term, scope for downward resumption
The EUR /USD pair declined on Thursday as dollar regained ground after upbeat US economic data and higher political risk in Europe ahead France's presidential election. Investors were largely focused on French politics, …
The EUR /USD pair declined on Thursday as dollar regained ground after upbeat US economic data and higher political risk in Europe ahead France's presidential election.
Investors were largely focused on French politics, as far-right National Front leader Marine Le Pen launched her presidential bid, vowing to fight globalization and take France out of the euro zone.
The number of Americans filing for unemployment benefits unexpectedly fell last week to near a 43-year low, amid a further tightening of the labor market that could eventually spur faster wage growth.
Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 234,000 for the week ended Feb. 4.
The ongoing weakness is set to continue for this pair as the resistance level at 1.0781 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 1.0694, a break above this level would expose the pair to next resistance level at 1.0738.
To the downside, immediate support can be seen at 1.0640, a break below at this level will open the door towards next level at 1.0619.
