Low correction from Friday and 200 hour MA hold on the first look
We need to remember that the US employment report did come out much stronger than expectations on Friday with NFP adding 292K (and higher revisions as well). The initial move was a sharp decline to support against the 1.0800 area. The subsequent move higher saw the price move above the 200 hour MA (green line in the chart below) and then retest that MA at the 1.0869 area. That level holds and the price extends to new session highs at the close.
Fast forward to today, the price moves higher on the opening but then starts to push back lower. The price moves back below a broken trendline on the hourly chart (see blue numbered circles), and that put a lid on the pair today. The fall took the price back toward the 200 hour moving average (green line in the chart above) and the corrective low on Friday at the 1.0869 area (the low was 1.08717). The 38.2% of the move up from the low last week also comes in at the 1.08699 level today. KEY AREA TODAY). Look for support buyers to defend the level on another test with stops on a move below.
On the topside, the 1.0898-1.09029 will be eyed as close resistance. This was a number of swing lows and highs. The correction off the lows today did swing above this level, but held the 38.2% of the days range and also below the 200 bar MA on the 5-minute intraday chart below. This is more bearish, so will give the benefit of the doubt to the sellers in trading today. A move back above those levels will be a different story though....
