EUR/USD: shy bounce from major support


EUR/USD Current price: 1.3705

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US Payrolls printed a nice 192K a bit below expected, while unemployment rate stood steady at 6.7% in March, also below expectations. Market was for the most waiting for a stronger number to help greenback extend the initial boost gave by Draghi yesterday, and did not get it: the initial reaction saw the greenback ease against most rivals, with the EUR/USD bouncing from a major long term support, a daily ascendant trend line coming from 1.2755, past July 2013 monthly low. But the bounce is still shallow, with the pair up to 1.3730 so far, unable to open current candle above the 1.3720 immediate Fibonacci resistance. 

The star of the day is being the Canadian dollar as local employment figures overcame expectations, leading to a massive sell off in USD/CAD holding now below the 1.1000 key psychological level. For the most, commodity currencies present a strong upward potential, while European ones held above mayor supports, but remain unable to gain upward momentum. 

The hourly chart presents a slightly positive tone coming from technical readings, albeit not yet sustainable due to the fact the pair faltered around mentioned resistance. To the downside, a Fibonacci level at 1.3660 along with the trend line at 1.3680 provide strong support and seems hard a break below them for today, as buyers will likely surge on approaches to it. Nevertheless, the upside is also limited, pointing for a maybe slow end of the week. 

Support levels:  1.3670 1.3640 1.3610

Resistance levels: 1.3725 1.3750 1.3780 


GBP/USD Current price: 1.6586

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The GBP/USD also regained the upside after testing a key technical support, the 61.8% retracement of the latest bullish run around 1.6550. The upside however, is being limited by the 1.6600 figure, where the pair presents the 38.2% retracement of the same rally, leaving the pair still directionless. Technically, indicators head slightly higher in negative territory and price hovers around a flat 20 SMA in the hourly chart, while the 4 hours one shows the mild bearish tone of the week prevails. Nevertheless, movements need to unfold from here to be able to set a more directional move for the upcoming week, with a break below 1.6550 mentioned support suggesting a downward midterm continuation again towards 1.6250 midterm support. 

Support levels: 1.6550 1.6510 1.6470

Resistance levels: 1.6600 1.6645 1.6690 

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