Bad news and Strong Dollar

EUR/USD 1hour chart, source:forexfactory.com

U.S. authority announced the Unemployment claims decreased to 278,000 on Thursday. It was higher recording 294,000 last week. But the market players expected the more advanced gauge, 276,000 and it occurred as the decline of Euro and strong US Dollar. Though the index was advanced than that in last week, it was deteriorated than expected value. The fact of bad result against the expected value leads the decline of the price.

But the event was ended and the price of the currecy pair, EUR/USD gained again. It recovered its price to the level before the announcement. Our topic is where it goes, up or down. Since May 3, EUR/USD pair declines from the peak 1.16. It tried the rebound but it shrank again. There is the downward trend line on this currency pair and the rebound in today may be restricted by the trend line. The meeting minutes in April of FOMC released on Wednesday showed that officials said a June rate hike would be appropriate if economic data indicated that growth was picking up in the second quarter and employment and inflation were firming. It can be read as the strong US Dollar. And it will be appropriate having short bias in EUR/USD chart.

Most of all, traders need to manage the risk than forecast the direction of the chart.

EUR/USD 4 hours chart, source: forexfactory.com