The dollar green retained his modest earnings recovery in the american session and was seen weighing on the pair EUR/USD, staying below 1.1800.
The pair rebounded at the beginning of the european session below the level of 1.1784, coinciding with a SMA of 20 days, but the recovery was stopped near the level 1.1810 after the publication of the weekly data on unemployment claims of the U.S.
According to the Department of Labor of the united States, the number of individuals who filed for unemployment benefits for the first time during the week ending August 18 rose by less than expected at 234K in comparison with 232K and 238K of the previous week.
The data reinforced the underlying strength in the labour market of the united States and provided an additional boost to yields of Treasury bonds of the united States, which eventually supported the demand of the us dollar and was observed by keeping the top of the greater.
The couple, however, did not address firm since investors seemed reluctant to make aggressive bets before the dominant discourses of central bankers in the very important symposium in Jackson Hole. The speech as expected of the chairman of the Fed, Janet Yellen, and the ECB president, Mario Draghi, where they would give new clues to the trajectory of the increases of interest rates in the united States and about possible efforts of stimulus from the ECB which eventually would help to determine the next directional movement of the pair.
Valeria Bednarik, analyst leader of FXStreet writes:
«The pair maintains the neutral stance in the short term, according with the 4 hours chart, trading just above converging SMA 20 and 100 at 1.1780, while the technical indicators reverted the momentum of Wednesday. The minimum of the Monday of 1.1730 is still the key support as a break below it should favor a drop to the prices area of 1.1680/90, where the selling interest has been quite strong in recent weeks «.
«Above 1.1820/30, next resistance comes in at 1.1860, the level to overcome to confirm a recovery firm to 1.1909, the annual maximum set at the beginning of this month,» he added.