The pair accelerated higher on Thursday and cracked important barrier at 1.3261 (Fibo 61.8% of 1.3386/1.3064 pullback) where upside attempts on Wednesday were rejected, leaving bearish daily candle with long upper shadow.
Strong US dollar was additionally boosted by better than expected US data (Philly Fed Manufacturing index jumped to 25.7 in July vs 21.6 f/c and 19.9 prev, while weekly jobless claims dropped to 207K vs 220K f/c and 215K prev).
On the other side, Lonnie was hit by downbeat Canada’s jobs data (ADP report showed number of employed people fell 10.5K in June, following previous month’s 2.9K rise). Bulls need sustained break above 3.3263 pivot to signal recovery extension and expose key barrier at 1.3386 (27 June high).
Strong bullish momentum and other daily studies in firm bullish configuration support the notion.
Broken 20SMA (1.3187) marks pivotal support, loss of which would weaken near-term structure.
Res: 1.3268; 1.3310; 1.3351; 1.3386
Sup: 1.3218; 1.3187; 1.3156; 1.3110
