EURUSD rebounds as the market digests the jobs report

Technical Analysis

It’s still a good jobs report but not up to ADP 

The US employment report is a good jobs report.

  

Adding 130K at this
point in the recovery is not all that bad. 
Wages remain above 3%. Participation rate is higher.  Unemployment rate remains steady at low
levels. 

The EURUSD has nevertheless moved higher (weaker dollar) but only by about
10-20 pips. The price was trading at around 1.1030 before the report. The price
high reached to 1.1046.  We trade between
that level now.  

The price remains below
the high for the day at 1.1051. The low for the day was down at 1.10198.  The midpoint of the narrow trading range day
is 1.1035 (the range is only 31 pips vs 54 pip 22 day average). 
The close from yesterday was at 1.1034. 
Pick your poison – long or short?

Technically, the
price is back above its 200 hour MA at 1.10291. 
That gives a little more of a bullish tilt, but the price has been
trading above and below the level today. Nevertheless, it is still above.  

The high for the
week was up at 1.1084.

If the price can stay above the 200 hour MA, all is ok with the upside. Getting back above the 50% of the move down form the August 23 high at 1.10434 would be another step in the bulllish direction (then make new highs).   

Coversely, a move below the 200 hour MA, would sour the mood for the buyers. 

Stocks are still up but off higher levels. Yields are still higher but also off high levels.  

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