EUR/USD unfazed around 1.18 handle post weekly jobless claims

The greenback preserved its modest recovery gains through early NA session and was seen weighing on the EUR/USD pair, keeping the rates below the 1.1800 handle. 

The pair did bounce off early European session low level of 1.1784, coinciding with 20-day SMA, but the recovery move stalled near 1.1810 level following the release of weekly jobless claims data from the US. 

According to the US Labor Department, the number of individuals who filed for unemployment related benefits for the first time during the week ended August 18 rose less than expected to 234K as against previous week's 232K and 238K expected. 

The data reinforced the underlying strength in the US labor market and provided an additional boost to the US Treasury bond yields, which eventually underpinned the US Dollar demand and was seen keeping a lid on the major. 

The pair, however, lacked any firm direction as investors seemed reluctant to carry aggressive bets ahead of key central bankers’ speeches at the very important Jackson Hole Symposium. 

The keenly awaited speech by the Fed Chair Janet Yellen, and the ECB President Mario Draghi would shed fresh light on the path of interest rate hikes in the US, and on possible stimulus unwinding efforts by the ECB, which would eventually help determine the pair's next leg of directional move.

   •  Jackson Hole Symposium: Eyes on Draghi and Yellen - BBH

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The pair retains the neutral stance short term according to the 4 hours chart, trading right above converging 20 and 100 SMAs at 1.1780, while technical indicators reverted Wednesday's momentum and now hover directionless around their mid-lines. Monday's low of 1.1730 is still the key support, as a break below it should favor a slide towards the 1.1680/90 price zone, where selling interest has been quite strong these last few weeks."

"Above 1.1820/30, the next resistance comes at 1.1860, the level to surpass to confirm a firmer recovery towards 1.1909, the yearly high set earlier this month" she added.