The recent rise in the US dollar led to overbought conditions, thus causing a lot of concerns among traders. However, the macroeconomic data continues to boost the greenback.
This time, the US dollar appreciation was driven by the unemployment claims data, which was significantly better than expected. In particular, the number of initial claims slumped by 22 thousand, whereas economists had anticipated a rise of 6 thousand. The number of continuing claims dropped by 8 thousand. What is more, the previous figure was downwardly revised. Thanks to such reports, the US currency managed to continue its rally.
Today, the macroeconomic calendar is empty. However, many officials of the Federal Reserve and the European Central Bank will deliver speeches. Since all the comments will be provided later today, traders will price them in only next week. Meanwhile, the greenback has become even more overbought. This, in turn, is bumping up the likelihood of a drop.
On the trading chart, we see that the euro slid below the support level of 1.0800 against the US dollar due to an inertial movement. In the last two weeks, the euro has depreciated by about 3%, which is more than 300 pips.
A slump in the single currency led to a technical signal of oversold conditions on the daily chart. In this light, the volume of short positions may decline, thus pushing the price to at least 1.0800.
Nevertheless, the pair will slide deeper if it settles below 1.0750. In the event of this, speculators may ignore the oversold signal. Such factors may result in a further decline. However, it will hardly be considerable and could be replaced by a rebound.
Meanwhile, the pound sterling continued falling against the US dollar, reflecting the ongoing correctional movement. In the last one week and a half, the pound sterling has lost over 250 pips.
If the market sentiment remains bearish, the pair may touch the support level of 1.2350. Once the price hits this level, the volume of short positions may decrease, thus slackening the downward correction.
That’s all for now. We keep monitoring the financial market situation. Subscribe to our channel. See you in several hours. We will take a close look at the US trading session.

00:00 Intro
00:17 Reason for the rise of the dollar
00:50 What's on the calendar?
01:13 EUR/USD
02:11 GBP/USD
02:40 Conclusion

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