The Euro lost ground to the USD after the Europe Area Consumer Price Index came out as experts anticipated with 117.14. The US released economic data on the labor market; Initial Jobless Claims came out better than expected, with 250K of the 265K anticipated by analysts.
The strong US labor market continues contributing to a faster recovery in the US economy, and we see this reflected in the USD exchange rate with the EUR.
The price could find strong support close to the lower Bollinger band at $1.00772, but as the bands continue to expand, that support will move lower.
The relative strength index is at 39%, which would allow the pair to continue moving downwards in the short term, but once it gets closer to 30%, the market sentiment is likely to change.
The price is trading below the short and long-term moving average trend lines, indicating that the pair is currently on a downward trend. Our parabolic SAR indicator strengthens the short signals for EURUSD in the short term.
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