The EUR dropped badly today against the USD, While yesterday with a bullish candle, it skyrocketed the USD and thus returned to the old position at a price below 1.1200. The price decrease is due to the announcement of the major economic news. However, due to the lower high wave printed on the graph during the last downside move, technical bias remains bullish.
EUR/USD: Technical Analysis
EURUSD, currently, being traded at the price of 1.1174, with the immediate horizontal support of 1.1163, quick below it there is the trendline support of about 1.1127 and then it could also get the support of the Fibonacci level at 1.1095 as exhibited in the graph below. the function of these support levels is to enlighten the hope of rising as these levels push the price above this level and also sustain it to this level.
Resistance levels are also observed in the graph above, which creates the pressure to drop the price below this level and also prevent it from moving forward. The first resistance is 61.8% Fib level which comes at a price of 1,1230, ahead of the trend line of 1,1340, and then the resistance, high of 25 June 2020.
EUR Unemployment Change
Fundamentally, on January 03, 2020, the release of The Unemployment Change published by the German Statistics Office, a measure of the absolute change in the number of unemployed people in Germany using seasonally adjusted data, has dramatically increased its figure from -16 K to 8 K this month.
The increase in this measure has negative implications for consumer spending, as there are fewer people working and the country’s economic development is therefore declining. A reading above estimated is generally perceived as negative (or bearish) for the EUR while a low reading is perceived as positive (or bullish).
Sensibly, it offers short-term traders the opportunity to invest it at that level, as it continues on the bullish trend since December 2019, and traders who would like to trade for a considerable period of time could also take a glance for their fate.