EUR/USD feels the pinch as robust US Jobless Claims lifts the US Dollar

• The EUR/USD is positioned at around the 1.0865 level, registering a decline of nearly 0.40%.
• The US Dollar rides on positive jobless claims figures, shedding light on a resilient labor market. 
• Durable Godds from October, on the other hand, came in weaker than expected.

In Wednesday’s session, the Euro slipped against the US Dollar, with the pair trading around the 1.0865 mark. The downfall was triggered by the report of strong weekly Jobless Claims figures, which reminded investors that the Federal Reserve (Fed) might take it as a threat to the battle against inflation.

In line with that, the US Department of Labor’s weekly data, revealed that Initial Jobless Claims for the week ending November 18 came in at 209,000 lower than the expected 225,00, tallying its lowest reading in five weeks. On the negative side, the US Census Bureau reported that Durable Goods Orders in the United States fell by 5.4% after its previous month’s increase of 4.6% and was worse than the anticipated contraction of 3.1%.

Despite the negative Orders figures, the US Dollar is trading strongly against its rivals, and the DXY index rose towards 104.10, seeing 0.50% gains. Investors may have gotten spooked after the strong labour market figures as the Federal Open Market Committee (FOMC) minutes from the November meeting reported on Wednesday that officials weren’t satisfied with the progress made on inflation. In line with that, all data points threatening the bank’s job may resume the hawkish bets on the Fed.

EUR/USD levels to watch

Despite the Relative Strength Index (RSI) showing a negative slope yet remaining in positive territory, it indicates a significant selling momentum on the horizon. In addition, decreasing green bars for the Moving Average Convergence Divergence (MACD) further support this sentiment, signalling a potential bearish crossover as the bears strengthen their grasp.

Moreover, as the bears have been steadily gaining ground, it may threaten the position of the pair above the 20, 100, and 200-day Simple Moving Averages (SMAs). The next support stands around 1.0800 (200-day SMA) and at 1.0790 (100-day SMA). On the upside, the 1.0900, 1.09030 and 1.0960 stand as resistances.

EUR/USD daily chart