EUR/USD: the pair settles below 1.10, the focus is on unemployment figures today

The eurodollar pair remains under pressure today, after yesterday's breach below the key psychological threshold of 1.10.

For the record, the pair fell over 100 pips yesterday, with a daily low of 1.0906, before making a timid recovery, without threatening to breach above the 1.10 threshold.

The EUR/USD's weakness was based on the evolution of the virus in Europe, with the progression of the epidemic still alarming in France, Germany, and especially Spain.

On the other hand, the USD strengthened against less worse than expected figures for the ADP report and the ISM manufacturing ISM, although it is common knowledge that these publications do not cover the period of the worst of the epidemic in the US.

The virus situation will therefore remain one of the main topics to watch today, but the economic calendar could also play a large role in the eurodollar's evolution.

Indeed, special attention will be paid to last week's weekly US Unemployment Claims, expected at 14:30 today. Economists are forecasting 3.5 million jobless claims, after 3.279 million the previous week.

However, the figures could turn out much worse, with estimates of up to 9 million job seekers. Goldman Sachs expects 5.26 million new registrations. Morgan Stanley expects 4.6 million, as does Moody's. Barclays expects 5 million.

Last week, unemployment registrations had caused the dollar to plummet. It is not out of the question that the scenario may repeat itself today, especially as the numbers are worse than the median consensus forecasts.

The trend is therefore sharply bearish. As for the thresholds to watch out for, note that the 200-hour moving average, and the psychological threshold of 1.09, stopped yesterday's fall.

Therefore, we will continue to monitor this zone as an immediate support level today.

On the upside, the major psychological threshold of 1.10, and the 100-hour moving average at 1.1016 will be the first potential obstacles to be taken into account in the event of an upturn.

Currently, the eurodollar  pair is trading around 1.0921 on the forex.

Hourly eurodollar chart