Technical Analysis EUR/USD for February 12, 2016

The EUR/USD continued to grind higher hitting a fresh 4-month high and poised to test the October highs near 1.1495. This comes as bond yields in the U.S. hit fresh lows as investors moved into safe haven assets. The stronger than expected jobless claims data did little to help riskier assets gain traction. The EUR/USD is overbought with the relative strength index (RSI) printing a reading of 72, above the overbought trigger level of 70 which could foreshadow a correction.

U.S. initial jobless claims dropped 16k to 269k in the February 6 week after rising 8k to 285k the week before. That brought the 4-week average down to 281.25k from 284.75k. Continuing claims fell 21k to 2,239k in the January 30 week following a 14k decline to 2,260 in the January 23 week.