Ceiling area and 200 hour moving average defined the trading range
The Canadian job data showed stronger than expected job gains (+952 vs. +700 estimate). There is some concern about the mix of employment but overall a better number. The price action has seen a move to lower to 1.3585 and a rebound back higher to to 1.36067. We currently trade between those levels at 1.35925.
Looking at the hourly chart, the low price in the early Asian session found support buyers against its 200 hour moving average (green line). That moving average currently comes in at 1.35717. Just below that is the 100 hour moving average at 1.35612. Yesterday the price moved back above the moving average line with upside momentum on the break.
On the topside, the high price today in the early European session stalled near the 61.8% retracement 1.36292. It was also near the swing area defined by recent highs and lows going back to June 26 between 1.3623 and that 61.8% retracement level.
So the pair is confined between resistance above that 1.3623 – 29 area and the 200 hour moving average at 1.35717. Traders will be waiting for the next shove.
