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EURUSD : Breaking Below a Rising Support Trend Line

(EURUSD : 4 Hour Chart)

US dollar strengthened against EUR pulling the pair down to the previous support level at 1.3601. The pair was following an upward channel trend and fell down from the resistance trend line of the channel. The pair continued to decline because of the upbeat US initial jobless claims data which came out stronger than the economist’s expectations.

"According to the report, in the week ending July 5, the advance figure for seasonally adjusted initial claims declined by 11000 to 304000 from the previous reading of 315000. The 4 week moving average which is considered as a better gauge for labor trends decreased by 3500 from the reading of 315000 to 311500. Economists were expecting an increase of 1000 to 316000"

The pair might decline up to 1.3586 if it breaks below the current support at 1.3601. The contraction of 50 day SMA and 100 day SMA towards each other is giving a bearish signal and the pair according to it should continue to decline. On the stochastic oscillator also the %K line is moving above the % D line signaling a continuation of downtrend.