EUR/USD holds 1.16 as US jobless claims rise unexpectedly

EUR/USD maintains its position around mid-1.1600 levels, showing resilience despite cautious bull sentiment following weaker US labor market data. Initial jobless claims unexpectedly increased, signaling potential softening in the US employment sector and weighing on dollar strength. The pair has found support above the 1.1600 psychological level, though upward momentum remains limited as traders await further economic catalysts. Technical indicators suggest a mild bullish bias, with immediate resistance seen at 1.1650 and solid support established at 1.1580. The weakening US economic indicators, particularly in the labor market, continue to undermine dollar bulls while providing underlying support for the euro. Traders are closely monitoring upcoming US economic releases and any shifts in Federal Reserve policy expectations that could influence the pair's trajectory in the near term.