The US dollar fell against most of its major rivals on Friday

The US dollar fell against most of its major rivals on Friday, as the monthly US employment report came in mixed. The EUR/USD pair however, closed the week at 1.0663, with the common currency unable to take advantage of the poor report. The major disappointment was wages. Instead of rising 0.2% as expected, they fell by 0.1% which brought the year-over-year rate back to 2.5% from 2.8%. Still the economy managed to create 178,000 new jobs in the month, beating market's expectations, but the previous month's figure was revised lower, to 142K from 161K initially reported, whilst the unemployment rate fell to from 4.9% to 4.6%, but due to a fall in the labor participation rate, to 62.7% from 62.8%. The focus this week, is on Europe, with the Italian referendum on Sunday, and the ECB meeting next Thursday. The Central Bank is expected to extend its QE program, but leave the amount of bond purchases unchanged.

From a technical point of view, and despite the pair has closed in the green for two consecutive weeks, it's still too early to call for an interim bottom at 1.0571, the low of the year achieved last November, as the recovery has faltered below the 23.6% retracement of its latest daily slide at 1.0700. The market is probably waiting for the ECB, and the FED, next December 14th, before defining some clearer positions in the pair. Daily basis, technical indicators have managed to correct extreme oversold conditions, but lost upward strength within bearish territory, while the price is currently struggling with a bearish 20 DMA, indicating limited buying interest. In the 4 hours chart the price is above a modestly bullish 20 SMA and around a strongly bearish 100 SMA, while technical indicators head slightly higher above their mid-lines, but with no certain momentum. An upward acceleration beyond 1.0700, can favor additional gains up to 1.0815, the 38.2% retracement of the same daily slide, while below 1.0600 the
pair may fall further to fresh year low.

Support levels: 1.0625 1.0590 1.0550

Resistance levels: 1.0700 1.0745 1.0790