The US jobs data was initially interpreted as strong. However, after reevaluation things like the revisions, a quirky tumble in the participation rate and data from the household survey painted a more sanguined vision and the USD moved back lower.
Later the ISM services data came in much weaker than expectations and the “fast break the other way” – to a lower dollar – was underway. Yields in the US went lower. Stocks moved higher.
Technically, the moves also shifted the bias in the 3 major currencies from dollar bullish immediately after the job report, to more bearish immediately after the ISM data..
In this video, I take a technical look at the EURUSD, USDJPY and GBPUSD and outline the bias shift, the risk, and the new targets as market sentiment shifts.
This article was written by Greg Michalowski at www.forexlive.com. Source