Another bad day for greenback this Thursday with most major pairs extending their rallies in the European session and quietly consolidating ahead of US opening: for the EU, data has been pretty discouraging with inflation falling in France and Italy, albeit news had hardly affected the pair. In the US, better than expected weekly unemployment claims triggered a short lived slide that was erased in a few minutes. Technically the hourly chart shows indicators losing upward potential in positive territory, while 20 SMA heads strongly up, providing dynamic support along with a Fibonacci retracement around 1.3850. In the 4 hours chart indicators maintain the bullish bias after correcting partially extreme overbought readings all of which supports more another leg higher for today. On bearish corrections, buyers will likely surge on approaches to the 1.3820/30 area, while below this last, 1.3780 comes as next buying line.
Support levels: 1.3850 1.3825 1.3780
Resistance levels: 1.3880 1.3920 1.3960