- Dollar weakness pushed EUR / USD, but the advance lost steam.
- US: Unemployment benefit claims recede, but below expectations.
The EUR / USD broke a small range for several hours as the dollar fell widely and climbed to 1.2149, the highest level since January 29.. The advance however lost momentum and the pair fell towards 1.2130, threatening to return to the previous range.
The dollar remains in negative territory, but in the last hour it cut losses. The dollar index is at 90.30, after having tested the weekly low. Wall Street futures point to an open with gains between 0.30% and 0.50% in the major indices.
Unemployment benefit data from the US showed continued decline in both initial and ongoing claims, but at a slower rate than expected. This continues to reflect complications in the labor market in returning to the pre-pandemic state. The data had no impact on the market.
From a technical point of view, the EUR / USD maintains a bullish bias in the short term although signs of exhaustion of the movement are beginning to emerge that would favor a correction or consolidation. In case of breaking and asserting itself above 1.2150, the euro could regain the initiative. The first relevant support can be seen at 1.2110 and below it follows the 20 SMA on the four-hour chart seen at 1.2100 / 05. A drop below this last level would point to a more pronounced downward correction.
The volume in the markets is restricted as a result of the holidays in Asia, which favors the routes in small ranges.
Technical levels
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