FxWirePro- EURUSD Trade Idea

EUR/USD declined slightly after mixed US economic data. It hit an intraday low of 1.04192 and currently trading around 1.04215.

The US economy expanded 2.3% on an annualized basis during the fourth quarter of 2024, or 0.6% over the previous quarter, validating early estimates but representing a slowdown from the last quarter's 3.1%. The economy was largely driven by household expenditure, up 4.2%, and government spending.

For the week ended February 22, 2025, U.S. initial jobless claims rose to a seasonally adjusted 242,000, higher than economists' forecasts and the highest since early December 2024. This is 22,000 higher than the revised level of the prior week, suggesting potential softening in the labor market and increased layoffs across sectors.

The increase in unemployed claims is evidence of some moderation in the robust U.S. labor market, possibly suggesting rising layoffs and initial economic issues.

Technical Analysis of EUR/USD

The pair is holding below short and below the long-term moving average in the 4-hour chart. Near-term resistance is seen at 1.0465; a break above this may push the pair to targets of 1.0500/1.0535/1.0575, and 1.0600/1.0660. Major bullish momentum is likely only if prices can break above 1.0660, where levels of 1.0700, 1.0760, and 1.0800 await. On the downside, support is seen at 1.0400 any violation below will drag the pair to 1.0360/1.0300/1.0220.

Market Indicators and Trading Strategy

Commodity Channel Index (CCI)-  Bearish

Average Directional Movement Index (ADX) - Neutral.  It is good to sell on rallies around 1.0470 with a stop-loss at 1.0535 for a target price of 1.0220.