The EURUSD has backed away from its near converged 100/200 hour MAs after the much stronger than expected ADP jobs report (807K vs 405K estimate). The high on the current hourly bar reached 1.13176. That was just above the 100 hour moving average at 1.13172, but below the 200 hour moving average not far away at 1.13185. The low price after the data reach 1.13022. The current price is at 1.1312.
In the late London morning session, the price did extend above the moving averages with the price high peaking at 1.1325 before rotating back to the downside. It would take a move back above the moving averages to give the buyers more hope/control. Move above and traders would target the 1.1342 area (swing highs from December 22, December 23, December 24 and December 30).
Stay below the moving averages, and the traders can start to work into the gains from today with the 1.1273 area as the next key level to get below.
Although the price is below the 100/200 our moving averages, for the day the pair is higher after moving sharply lower on Monday, chopping up and down on Tuesday (with the 200 hour moving average stalling the spike higher during trading yesterday before moving back to the downside).
Today the first few hours of trading stayed above the lows from last week and yesterday. The low in the Asian session today was 1.1276, while the low from yesterday reached 1.12717 and the low from last week reached 1.1273. That helped to give the buyers some comfort in pushing to the upside.
