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.
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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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