The 200-day moving average is a defining level on multiple charts ahead of the US jobs report
The close to the week and the US jobs report later is turning out to be quite an exciting one. We're running into key levels on multiple charts across multiple assets, but none are looking bigger than these ones here:
Stay above the 200-day MA, and that will mean momentum as well as bias in the dollar remains bullish. A key level to look out for in the aftermath of the US jobs report.
Buyers managed to salvage a close above the key level yesterday, but jitters still remain in the market and today's trading will be highly watched to see if we're set for more pain in equities or a rebound in risk sentiment.
Sellers managed to break the 200-day MA and send the pair lower below 1.2000. And the 200-day MA has helped to cap any upside move in the pair this week. If the dollar is to weaken for any reason today, that will be a key level to look out for as it would be the start of a change in the bearish bias in the pair if the level gives way to the upside.
This was the level that helped to stall yesterday's decline, and in the event of dollar strength today will be a key level to watch. Break below and there is a fresh bearish bias in the pair - despite all the downside we have seen already.
For the past three days until yesterday, gold tested the 200-day MA before climbing back up to highs of $1,314 today. Any downside move in the commodity will rest on breaking the key level, so if the dollar strengthens from the jobs report later look out for that.
While there is a lot of anticipation ahead of the payrolls and wages data later from the US, we must also acknowledge that it could all end up in disappointing fashion and that price action will be limited and a little "muted".
Should that be the case, expect these same levels above to play out next week as well. After all, it's not going to go away until something happens in the market.
