EUR/USD drops further on US data

FXStreet (Edinburgh) - The selling interest is now gathering further traction around the euro, dragging EUR/USD to session lows in the 1.1265/60 area.

EUR/USD weaker on US Claims

The pair is accelerating its intraday decline after US Initial Claims dropped more than expected to 265K in the week ended on May 1st vs. 280K initially forecasted, and a tad higher than the previous week’s 262K.

The pair keeps dipping into the negative territory after reaching fresh tops in levels just shy of the 1.1400 handle in early trade, against the backdrop of some recovery in the debt markets in the euro area and Greek headlines.

EUR/USD levels to watch

The pair is now losing 0.57% at 1.1283 and a breach of 1.1262 (low May 7) would aim for 1.1250 (100d-MA) and then 1.1175 (low May 6). On the other hand, the initial hurdle aligns at 1.1393 (high May 6) followed by 1.1450 (high Feb.17) and finally 1.1486 (high Feb.6).

US initial jobless claims stay near 15-year low

The US labor department data released on Thursday showed the first time applications for unemployment benefits last week, taking the average to the lowest in 15-years.
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