Daily Analysis EURUSD - 9 June 2023

Thursday's data revealed that the number of Americans filing new claims for unemployment benefits reached the highest level in over 1-1/2 years. It's important to note that the data included the Memorial Day holiday period, which may have introduced some volatility and could mean that layoffs are not necessarily accelerating.

However, this increase was significant enough to drive the U.S. dollar to its lowest level against a basket of currencies in over two weeks. Investors interpreted the data as an indication of a slowing U.S. labor market.

Currently, traders estimate a 73% probability that the Federal Reserve will maintain interest rates unchanged on June 14, compared to a 27% chance of a quarter-point increase. However, the market considers a rate hike highly likely in the July 26 decision, with the probability estimated at around 80%.

From a technical standpoint, the EUR/USD changed direction and made a correction after yesterday's Labor market Data that led investors to bet on different paths for the economy but that can’t be enough to change DXY and EURUSD direction before the next CPI and FED meeting. An important resistance level to watch for is approximately 1.0790. On the other hand, there are support levels around 1.0700.

Resistance 3	Resistance 2	Resistance 1	Support 1	Support 2	Support 3
1.0900	1.0850	1.0750	1.0700	1.0640	1.0600