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EUR/USD can't take off

FXstreet.com (Chicago) - EUR/USD extends the corrective move after the strong plunge that took place yesterday after the publication of the Fed’s vote of confidence for a US economy that seems contradicted by empirical performance results.

Disappointing US job market data

After being at the void of breaking an immediate support, the pair emerged slightly to sail away from grounds and attempt a takeoff that stalls. Job market data in the US disappointed supporting the case of an unprepared economy to accept the tapering that started yesterday with the Fed’s decision to reduce the bond-buying program. At 379K, initial jobless claims failed to beat expectations similarly to continuing jobless claims at 2.884M vs. estimates at 2.780M.

EUR/USD Technical Levels

Offered at 1.3674, the pair navigates between the supports aligned at 1.3656 (session lows), 1.3577 (November 19th highs) ahead of 1.3515 (December 3rd lows) and the resistances set at 1.37 (December 12th lows), 1.3796 (December 14th highs) followed by 1.3796 (August 17th 2011 lows). According to the FXstreet.com trend index on one-hour timeframe analysis, the pair is slightly bullish and is below the EMA20.

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