On Friday morning, the EUR/USD passed below technical support levels near 1.0800. The pair was expected to continue to decline, as it had no other technical support.
Meanwhile, it appears that despite massive bad US data is being released, the US Dollar is not losing value.
US Unemployment Claims
The Euro depreciated against the US Dollar, following the US Unemployment Claims data release on Thursday at 12:30 GMT. The EUR/USD exchange currency rate lost 18 pips or 0.16% after the release. The Euro continued trading at the 1.0850 level against the Greenback after the release.
The Department of Labor released the US Unemployment Claims data, which came out worse-than-expected of 6.648 million compared with the forecast of 3.600 million.
According to the official release: "The COVID-19 virus continues to impact the number of initial claims. Nearly every state providing comments cited the COVID-19 virus. States continued to identify increases related to the services industries broadly, again led by accommodation and food services. However, state comments indicated a wider impact across industries. Many states continued to cite the health care and social assistance, and manufacturing industries, while an increasing number of states identified the retail and wholesale trade and construction industries."
Economic Calendar Analysis
EUR/USD hourly chart's review
On Friday morning, the rate passed the support of a pivot point and the 1.0800 level. The rate had no technical support as low as 1.0615. In addition, the rate broke the channel down pattern.Hourly Chart
By the middle of Friday's GMT trading hours, 70% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had remained almost unchanged since March 20. Traders remained short despite the recovery of the EUR/USD that has been occurring since that day.
During the previous trading sessions, they were recovering some of their losses.