The EURUSD took out the low from last weeks trading at the 1.3034 level in the asian session. However, when the price could not muster any momentum on the new low (low came in at 1.3032), the shorts covered, and pushed the price up to 1.3085.
So far, in the early NY session the price has moved back lower, but stalled at the area where the price was trading just prior to the US employment report on Friday at 1.3060. The market continues to struggle with direction in the semi holiday trading environment today (UK and most of Europe being closed).
Looking at the hourly chart above, the price has a nicely defined trendline that has topside resistance at the 1.3077 level. The 38.2% of the move down from the Thursday high comes in at 1.3082. Traders may look to use this area for intraday bias (bullish above/bearish below) in the sluggish trading environment. Unless the stocks play an active roll today, prepare for a quiet one until some more news (Bernanke later today) and/or global bond markets start to trade in earnest.
