EURUSD price fell below 1.0800 area today during the London session. EURUSD may surge higher as the U.S. jobless claims increase in the millions, which may make USD weaker. Can EURUSD recover higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s EURUSD Technical Analysis.
May 14, 2020, | AtoZ Markets – EURUSD is currently trading around 1.0790 area while the price found support at the rising trend line. Moreover, the price is residing inside the ranges of 1.0990 to 1.0770 area from an extended period. As per the current scenario, EURUSD may push higher but requires an impulsive bullish daily close in the coming days.
EURUSD May Surge Higher as the U.S. Labour Market Sinking
Coronavirus pandemic crisis continuously harming the U.S. labour market. Therefore, millions of Americans lose their job, which includes white-collar workers as well. According to the Labour Department report of Thursday, primitive claims for state unemployment benefits totalled a seasonally adjusted 2,981 million for the week ended May 9. Though this number was down from 3.176 million in the prior week.
Furthermore, in the latest week, economists polled by Reuters had predicted applications for unemployment benefits totalling 2.5 million. But after hitting a record 6,867 million unemployment claims, the numbers are gradually decreasing. On the other hand, U.S. President Donald Trump said, “We must have a working economy, and we want to get it back very very quickly, and that’s what’s going to happen. I believe it will boom.”
EURUSD Bears May Lose Momentum
EURUSD is currently residing near 1.0790 area and trying to climb higher. Moreover, the current price action is quite volatile and corrective as low liquidity is driving the market slowly.
Image: EURUSD 4 Hour Chart
According to the 4-hour chart, EURUSD is currently trading around 1.0790 area and bounced higher from the uptrend line. As per the current price action context, if the price can have a bullish 4-hour close above 1.0820 area, the bulls may push the price higher towards 1.0900, which is insider bullish channel resistance. Alternatively, if the price breaks below 1.0770 area with an impulsive bearish close, the bears may decline towards 1.0660 in the process.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, along with the Kijun line and Tenkan line. The dynamic levels may act as strong resistance to push the price down. In contrast, if the price breaks above the dynamic levels, the bullish pressure may sustain towards our buy take profit area. Besides, the MACD lines are currently residing near 0.00 level, and gradually rising upward. It indicates EURUSD may gain momentum to surge higher.
To conclude, EURUSD has passing the most volatile period in history from the last two months. As COVID-19 pandemic lockdowns are not easing in the U.S. and unemployment claims are increasing. There is a high chance that EURUSD may surge higher in the coming days.