The US dollar gathers strength after the US data is revealed before the FOMC meeting, causing the EURUSD rate to be at 1.11366.

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• The US dollar gains momentum following the release of US data ahead of the FOMC meeting.

The pair currently trades last at 1.11366.

The previous day high was 1.124 while the previous day low was 1.1174. The daily 38.2% Fib levels comes at 1.1199, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1215, expected to provide resistance.

The EUR/USD is falling on Thursday, experiencing its worst day in almost a month. The pair dropped to 1.1140, reaching the lowest level in a week. It remains intraday biased towards the downside, hovering around 1.1150 as the US dollar maintains a positive tone.
US data favors US Dollar

The US weekly jobless claims report showed a decline in initial claims to 228K, the lowest level since mid-May and better than the market estimate of 242K. However, in a different report, Existing Home Sales dropped from 4.3 million to 4.16 million (annual rate), below the expected 4.2 million. Data from the Eurozone showed that Consumer Confidence, as measured by the flash estimate for July, improved from -16.0 to -15.1, which was better than expected.

The US job market figures continue to reflect a tight labor market, which contributes to the performance of the US dollar ahead of next week’s FOMC meeting. Market participants expect the Federal Reserve to raise rates by 25 basis points on Wednesday. The US 10-year bond yield stands at 3.85%, the highest since July 13, while the 2-year yield is at 4.87%, the highest since July 12. The US Dollar Index climbed from 100.30 to 100.75, reaching the highest level in a week. Stocks on Wall Street are mixed, with the Nasdaq down by 1.15% and the Dow Jones up by 0.71%.

The dominant uptrend in EUR/USD remains firm, however, in the short-term, bearish signals are reasserting themselves. Prices turned decisively lower on Thursday after being unable to break above 1.1230. It easily broke under 1.1200 and is now testing 1.1150.

In the short-term, technical indicators are biased to the downside. The next support level is seen around 1.1120/25 followed by 1.1070. On the upside, 1.1190 could be seen as the immediate resistance, followed by 1.1230. A recovery above 1.1240 would negate the current negative bias.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1143 at the time of writing. Pair opened at 1.1201 and is trading with a change of -0.52 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.1008, 50 SMA 1.0884, 100 SMA @ 1.0872 and 200 SMA @ 1.0675.

The previous day high was 1.124 while the previous day low was 1.1174. The daily 38.2% Fib levels comes at 1.1199, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.1215, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.117, 1.1139, 1.1104
• Pivot resistance is noted at 1.1236, 1.1271, 1.1302

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