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EURUSD : Continues to Follow Uptrend, Eyes on US data

EURUSD: Daily Chart

EURUSD is following a rising channel trend on the daily chart and found resistance at 1.2851 which earlier was acting as support for the pair. The gains seems limited as there is a falling resistance trend line which will prevent it in rising further. According to the trend the pair should continue to follow this uptrend breaking above the current resistance but decline from the rising support trend line of the channel once it finds resistance from the falling resistance trend line.

In fundamental terms, the jobless claims data from US just released which showed that the number of people who applied for the jobless benefits declined by 23K to 264K in the week ending October 11 which is the lowest level since April 2000. The four week moving average which is considered as the better gauge for the labor market trends, fell by 4250 to 283500 also reaching to the lowest level since 2000.

EURUSD : 4 Hour Chart

On the 4 hour chart, the pair still seems supported as the 50 day SMA just crossed above the 100 day SMA signaling an uptrend continuation on the chart. This might because of the euro zone inflation data which showed that the euro zone consumer price inflation remained at .3%in September in line with the economist's expectations whereas Core CPI which excludes volatile items like food and energy, ticked up to .8% from the initial estimate of .7% and better than the economists expectation for an unchanged reading.