EURUSD rebounds as the market digests the jobs report
It's still a good jobs report but not up to ADP
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.