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EUR/USD Outlook: Divergent Fundamentals Still At Play

The EUR/USD remains under pressure after strong NFP data and negative comments on the European coronavirus situation by the French Finance Minister Bruno Le Maire.

In comments that were picked up by the newswires earlier today, Le Maire said that the new lockdowns should have an impact on the EU economy in 2021. He also predicted an impact on the growth forecast, promising that the impact of the new lockdown would be evaluated in the coming days. 

The effect of these negative comments on the EUR/USD was reinforced by better-than-expected jobs numbers out of the US, which showed that 916K jobs were added (versus 468K – an upward revision of the previous number). The unemployment rate also fell from 6.2% to 6.0%, putting the greenback in a stronger position than the single currency.

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As of the time of writing, the EUR/USD had rejected the earlier bullish run on the day and was now trending lower on a day that has seen thin volumes as a result of the Good Friday holiday. 

Technical Levels to Watch

The intraday picture on the 1-hour chart shows the price plateauing at 1.17866, before turning lower. The immediate target lies at 1.17313 but requires bears to break down the intraday support at 1.17504. Further intraday targets to the south lie at 1.17124 and 1.17036. 

On the other hand. a bounce at 1.17504 allows for a bullish recovery towards 1.17866. However, the psychological resistance at 1.18008 is only attainable if bulls can overcome the intraday resistance at 1.17866.

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EUR/USD Hourly Chart

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