US numbers were generally positive on Thursday, as the economy continues to move in the right direction. Unemployment Claims sparkled at 235 thousand, much lower than the estimate of 257 thousand. This marked the lowest weekly claims total since 1973. CPI matched expectations at 0.4%, but Core CPI came in at 0.1% shy of the estimate of 0.2%. The Philly Fed Manufacturing Index dropped to 7.6 points, short of the forecast. On the housing front, Housing Starts remained unchanged at 1.23 million, above expectations.
•EUR/USD posted small losses in the Asian session and has been flat in European trade. The pair broke through two support lines on Thursday, following sharp losses by EUR/USD
•1.0505 is providing support
•1.0616 is fluid and is currently a weak resistance line
Further levels in both directions:
•Below: 1.0506, 1.0414 and 1.0287
•Above: 1.0616, 1.0708, 1.0821 and 1.0957
•Current range: 1.0506 to 1.0616
EUR/USD ratio has posted gains in short positions. Currently, short positions have a majority (67%), indicative of trader bias towards EUR/USD continuing to move to lower ground.