The USD moves lower initially after the US jobs report but with downside limitations

The USD moved lower after the headline nonfarm payroll came in weaker than expected, but the average hourly earnings were a bit higher and the unemployment rate dipped as well which has limited the declines in the greenback.

EURUSD: The EURUSD moved up to test the swing high from Monday and last Friday at 1.09329. That was the next upside target level after breaking above the 200-hour MA at 1.08977. The sellers leaned against that level and forced the price back down. Staying above the 200-hour moving average is a close risk for buyers looking for more upside. A move below would disappoint the buyers. Getting above the high from Monday and Friday would open the upside for the pair.

USDJPY: The USDJPY moved lower to test 38.2% of the move up from the June 1 low at 142.528 (see chart below). The price bounced off that level and has seen the pair run back to a break level from earlier today. The 143.43 to 143.53 is the upside target for that pair that if broken, would negate some of the bearish bias on the break lower today. Support buyers were waiting at 38.2% retracement on the dip today.

GBPUSD: The GBPUSD traded to a new high going back to June 22 reaching a high of 1.28077 in the process. Sellers entered. On the downside, the swing area between 1.2738 and 1.2753 will now be eyed as key bias support. Stay above and the buyers will remain in control. Move below and buyers turn to sellers.

USDCAD: The USDCAD moved lower. Along with the US jobs report, Canada also released their jobs report which was mixed with employment change showing a large and expected gain, but wages were lower and participation rate was higher. The unemployment rate was also higher. Technically, the USDCAD moved down to a swing area between 1.3312 and 1.3322. The 38.2% retracement of the move down from the May high at 1.3321 is also in play. The low price reached between the swing area at 1.3316 so far and has see a modest bounce. Move below and the door opens for more selling momentum.

This article was written by Greg Michalowski at Source