Job growth slow but unemployment rate falls and participation rate rises
The EURUSD move higher briefly after the weaker job gains. The Fed pricing has a rate hike by June with two hikes prices in for 2022. That is unchanged from before the jobs report. As mentioned, the Fed is now focused on inflation concerns. The weaker jobs number is still positive and the unemployment rate coming down is in the right direction as well.
Technically, the price high moved up to 1.13329. That was just above a swing area between 1.13215 and 1.13315. It is still below the weeks high which peaked at 1.13775 on Tuesday.
The price has come back down and currently trades at 1.1295. That puts the price between the 100 hour moving average at 1.13125 and the 200 hour moving average at 1.12765 and into a neutral bias area at least in the short term. It will take a move above the 100 hour MA or below the 200 hour moving average to increase the bias in the direction of the break.
The price has been consolidating within a range since mid-November. The high price this week stalled near the 38.2% retracement of the move down from the October 28 high at 1.3778. The high price reached 1.13822 on Tuesday just above that retracement level. That keeps the sellers more in control as the corrective move off the low is a simple plain-vanilla variety (to the 38.2% retracement area).
Having said that getting back below the 200 hour moving average is required to increase the bearish bias and have traders looking toward swing lows. The low for the week on Tuesday also came in at 1.12335.
