FxWirePro: EUR/USD neutral in the near-term, scope for downward resumption
The EUR /USD pair fell as low as 1.0595 in the early US session, as greenback clawed back from earlier losses after US weekly jobless claims data. Initial claims for state unemployment benefits increased 1,000 to a seaso…
The EUR /USD pair fell as low as 1.0595 in the early US session, as greenback clawed back from earlier losses after US weekly jobless claims data.
Initial claims for state unemployment benefits increased 1,000 to a seasonally adjusted 234,000 for the week ended May 20, the Labor Department said on Thursday.
Labor market strength supports the view that an abrupt slowdown in economic growth in the first quarter was probably temporary, which could encourage the Federal Reserve to raise interest rates next month.
Further upside in this pair is expected to be limited as the pair finds strong resistance at 1.1258 which should limit further upside and bring decline towards lower levels in the short term.
To the upside, the immediate resistance can be seen at 1.1228, a break above this level would expose the pair to next resistance level at 1.1258.
To the downside, immediate support can be seen at 1.1197, a break below at this level will open the door towards next level at 1.1157.
