USDCAD struggles to bounce
The Canadian dollar finds support from lower jobless rate in March. On the daily chart, the pair has found some support in the demand zone (1.3400) from the mid-February rally. A series of higher lows indicates mounting buying pressure and 1.3530 is the first obstacle ahead and a decisive breakout would shake out some sellers and give the buy side a chance to turn things around. Otherwise, a fall below 1.3460 would make the recent floor at 1.3410 vulnerable to a breach and cause a bearish reversal in the medium-term.
USDCHF tests psychological level
The US dollar slips as traders await the non-farm payrolls report amid Easter’s limited liquidity. A bearish MA cross and a drop below the daily support of 0.9100 suggest an acceleration to the downside. Those who bought the previous dip are looking to get out at rebounds, increasing the downward pressure. The psychological level of 0.9000 looks fragile. As the RSI recovers to the neutrality area, 0.9140 is the first level to expect strong supply and only a break above the 0.9200 area would help the greenback regain its appeal.
EURJPY finds support
The euro rallied after the ECB’s chief economist stressed that food inflation is still rising. A tentative break above the March high of 145.50 is the first step towards a bullish extension in the medium-term. The pair is looking to hold on to its gains after lifting offers around 143.00. As the RSI bounces back into the neutral area, a rebound is starting to take shape from 142.60 in the previous supply zone. A close above 145.50 would attract momentum buying and resume the rally. 141.00 would be the bulls’ second support level.
