EUR/USD maintains bearish bias below 1.0700 handle

The EUR/USD pair continued trading with mild bearish bias and failed to gain any respite from the US weekly jobless claims.

Currently trading around 1.0680 region, the pair moved little after the US Labor Department reported that a constant decline in the number of Americans applying for unemployment related benefits. In fact, initial weekly jobless claims dropped 12,000 to a seasonally adjusted 234K for the week ended Feb. 3 and remained closer to the 43-year low of 233K touched in early November. The reading was far better-than 250K expected and 246K reported in the previous week.

Despite of the upbeat labor market report, the US Dollar lacked any follow through buying interest as investor seemed reluctant from initiating aggressively bet against the backdrop of recent rhetoric from the new Trump administration on exchange rates.

Meanwhile, potential political risks related to the French presidential election has also refrained investors from buying the shared currency, leading to a directionless trading action around the major.

Technical levels to watch

Weakness below session low support near 1.0670 level could get extended towards 1.0640 area (previous session low) ahead of 50-day SMA support near 1.0600 round figure mark. Meanwhile on the upside, a sustained move above 1.0700-10 immediate hurdle could trigger a short-covering rally towards 1.0745-50 horizontal level. However, any subsequent up-move might now be capped at 100-day SMA strong hurdle near 1.0785-90 region.

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