EUR/USD weighed down by SNB and US unemployment numbers – FXStreet

FXStreet (Barcelona) - According to Valeria Bednarik, Chief Analyst at FXStreet, the EUR/USD pair extended below 1.2270 levels after being pressurised by the SNB’s actions to defend the CHF floor and better than anticipated US weekly unemployment claims.

Key Quotes

“The EUR/USD pair remains subdued this Thursday, weighted by the surprise decision of the SNB to turn its Libor rate negative, down to -0.25% to defend EUR/CHF peg. Better than expected US weekly unemployment claims helped the pair extend its decline ahead of US opening below the 1.2270 level.”

“The 1 hour chart presents a strong bearish tone, with price capped below a 20 SMA and indicators heading south below their midlines.”

“In the 4 hours chart indicators also present a strong bearish momentum despite in extreme over sold territory, as price approaches this year low of 1.2240. A break below it should lead to a continued selloff, down to 1.2190 as immediate bearish target.”

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