EURUSD Eyes 1.0000 Amid Eurozone Unemployment News

The Euro (EUR) inched lower against the US Dollar (USD) on Friday, dragging the price of EURUSD to less than 1.0650 following the release of some key economic news. The technical bias remains bearish because of a lower low and lower high in the recent wave.

Technical Analysis

As of this writing, the pair is being traded near 1.0643. A support can be seen around 1.0552, the intraday low of yesterday ahead of 1.0518, the swing low of the last major downside move as demonstrated in the given below daily chart. A break and daily closing below the 1.0518 support shall incite renewed selling pressure, validating a move towards the 1.0000 which is the parity level.

On the upside, the pair is expected to face a hurdle near 1.0666, the intraday high of yesterday ahead of 1.0685, the short term horizontal resistance area and then 1.0905, a major horizontal resistance. The technical bias shall remain bearish as long as the 1.1300 resistance area is intact.

Eurozone Unemployment

The euro area (EA19) seasonally-adjusted unemployment rate was 9.8% in October 2016, down from 9.9% in September 2016 and from 10.6% in October 2015. This is the lowest rate recorded in the euro area since July 2009. The EU28 unemployment rate was 8.3% in October 2016, down from 8.4% in September 2016 and from 9.1% in October 2015. This is the lowest rate recorded in the EU28 since February 2009. These figures are published by Eurostat, the statistical office of the European Union.

Trade Idea

Considering the overall technical and fundamental outlook, selling the pair around current levels appears to be a good strategy in short to medium term.

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Usman Ahmed

Usman Ahmed is an individual forex trader and market analyst. He holds a Masters of Business Administration (MBA) degree. His work includes fundamental and technical reports on various currency pairs, commodity futures and stock markets. His technical analysis features price action strategies.

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