EUR/USD Currently Finding Support at Former Resistance

EUR/USD is moving lower today, currently trading at 1.0646, down 0.26% from Thursday’s North American close. The pullback is taking place as the US dollar index rebounds. The dollar is currently trading at 100.72, up 0.22%.

The dollar is moving higher following upbeat economic reports on Thursday. Initial jobless claims for the week ending February 11 increased by just 5,000 to 239,000. The data was better than consensus estimate for 245,000 new claims, according to a Thomson Reuters survey. Continuing claims for the week ending February 4 fell 3,000 to 2.076 million. Overall, initial claims are at historically low levels, which is a positive for nonfarm payroll growth.

In addition, the Philadelphia Fed Index for February rose to 43.3, versus analysts’ estimates for a reading at 17.5. This follows a reading at 23.6. Overall, the reading indicates that manufacturing activity is moving at a healthy pace in the Philadelphia Fed region.

At present, EUR/USD is finding support at the lows established on January 20/30 and February 8. The ability to clear this zone, from 1.0620 to 1.0640, was a positive sign and continuing to hold this level during today’s session would keep the bias to the upside heading into next week.

On a further move higher, resistance is at the 20-day moving average, which still comes in near the 1.0700 level, an area which could also have potential psychological value.

In the US, the economic calendar is light today, with leading indicators for January due at 10:00 ET.

EUR/USD Daily Chart

EURUSD_021717

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Tracy L. Morganthall, CMT, has been a Technical Market Analyst for more than 20 years. She has experience analyzing and producing reports on equities, both domestic and international markets, as well as Forex and commodities. She attended Trenton State College in Trenton, New Jersey, earning a Bachelor's in Finance.