EUR/USD: Bullish outlook while above 1.18

The EUR/USD pair surged to 1.1915, a fresh multi-month high, only to retreat to the current 1.1850 area. US weekly unemployment claims surprised to the upside while other employment-related data missed. Technically, euro/dollar retains its bullish stance, FXStreet’s Valeria Bednarik reports.

Key quotes

“US Initial Jobless Claims for the week ended July 31 surprised to the upside, as those claiming for unemployment benefits accounted for 1.18 million, better than the previous 1.43M and also beating the market’s expectation. Challenger Job Cuts, however, were up to 262.649K in July, from 170.219K in the previous month.”

“The 4-hour chart shows that EUR/USD keeps developing above bullish moving averages, with the 20 SMA providing dynamic support around 1.1800. Technical indicators, in the meantime, remain within positive levels, with uneven bullish strength.”

“As long as the pair remains above the 1.1800 mark, the risk of a bearish movement will remain well limited.”