• Taking out 1.0784 activates more gains.
• The lower median line (LML) represents a dynamic support.
• The US Unemployment Claims could bring high action.

The EUR/USD price dropped like a rock on Thursday, trading at 1.0762 at the press time. It climbed as high as 1.0788 today, where it found resistance.

Yesterday, the German Industrial Production reported a 1.6% drop versus the 0.4% drop expected, while the US Trade Balance came in at -62.2B versus -62.0B expected.

Today, the US economic data could bring some action. The Unemployment Claims indicator could drop from 224K to 221K in the last week.

This situation may help the Greenback appreciate versus its rivals. In addition, the Final Wholesale Inventory is expected to report a 0.4% growth for the second month in December.

Also, the FOMC Member Barkin Speaks could have an impact in the short term. Tomorrow, the German Final CPI may report a 0.2% growth. Furthermore, the Canadian Employment Change and Unemployment Rate could move the USD.

From the technical point of view, the EUR/USD price turned to the downside after failing to take out the 1.0784 static resistance. The false breakouts announced exhausted buyers.

Now, it could approach the ascending pitchfork’s lower median line (LML), representing dynamic support. The price could still extend its rebound despite minor retreats as long as it stays above it.

The S1 of 1.0745 stands as a static support. Testing the lower median line and registering only false breakdowns signals a new bullish momentum.

A bullish closure above 1.0784 opens the door for more gains. A new higher high, removing the immediate downside obstacles, should announce more declines.

https://www.forexcrunch.com/blog/2024/02/08/eur-usd-price-sellers-dominate-before-unemployment-claims/