The NFP data indicated that businesses are starting to hire, providing the dollar with a much needed jump against many currencies.
EURUSD
The Euro fell back to support, now sitting precariously on its 2-week long rising trendline. It is also sitting at the bottom of the 1.40-1.41 support area, which was briefly penetrated following the FOMC announcement. If support fails, expect a quick drop to the 1.3750 region. The more likely scenario is for a bounce higher off of support, and traders may want to go long here, if the Euro can show some strength.
EURGBP
The Pound continues to gain on its European cousin, with the EURGBP breaking back below support at the .87 level. Expect prices to fall through last week’s low of .8650, and for prices to continue moving down within the channel towards the next support level at .8550.
USDCAD
The Canadian Dollar continued gaining on the dollar, despite the strong payroll data. Price has been moving in a swift and steep downward channel on the 4-hour chart. Price has already completely reversed the October bounce in the dollar, and is sitting right above support at .9975. The USDCAD is likely to breakout to multiyear lows, potentially heading to the 2007 .9000 level.
Written by bforex.com
