EUR/USD Continues To Fall Amid Strengthening USD

EUR/USD 4-Hour Chart

Yesterday the pair continued falling amid strengthening in theUS dollar, which was substantially supported after the publication of strong data on the Employment Change on Wednesday. At the same time, the American currency was slightly pressured by yesterday’s data on Jobless Claims.

The number of Initial claims increased from 266 to 268 thousands, against a forecasted decline to 265 thousands, while the number ofContinuous claims fell from 2.144 to 2.138 million that was also slightly worse than forecasts.

In addition, the dollar remains under pressure prior to a publication of crucial data on the US labour market that could have a significant impact on Fed’s decision about monetary policy tightening and would determine further dollar dynamics.

EUR/USD Daily Chart

Bollinger Bands on the daily chart is moving up while the price range is widening from the top. MACD turned down and formed a sell signal. Stochastic is falling as well and approaching the oversold zone.

The indicators recommend waiting for clearer trading signals.

Support levels: 1.1119 (local low), 1.1100, 1.1083, 1.1059 (28 July low), 1.1024, 1.1000 (psychologically important level), 1.0970, 1.0951 (25 July low).

Resistance levels: 1.1154 (local high), 1.1196, 1.1233 (2 August high), 1.1255, 1.1300 (24 June high).