The EURUSD is moving to the upside after the US jobs report showed a little bit weaker nonfarm payroll. The unemployment rate remains low at 3.5% versus 3.6% last month. Average hourly earnings were higher than expectations but the average workweek did fall modestly.
Technically, the move above the 100-hour moving average at 1.09674 (blue line in the chart above) tilts the bias marginally to the upside. The falling 200-hour moving average currently at 1.10039 is the next target. Recall from last week the price tested that moving average but found willing sellers. A move above would increase the bullish bias. The last on the price traded over its 200 hour moving average was back on July 20.
The question for buyers on the break is can the price remain above its 100-hour moving average?
On Wednesday, after the Fitch downgrade, the price of the EURUSD briefly moved above the level only to find willing sellers. Back on Monday, the price also moved above that moving average line and again failed quickly.
Risk in the short-term for buyers on the break is a move back below that 100 moving average level with momentum (give it a few pips). Get above the 200 hour moving averages more bullish.
- Dow Industrial Average is up 57 points in premarket trading
- NASDAQ index is up 88 points
- 2 year yield 4.83% -1.3 basis points
- 10 year yield 4.159% -3.0 basis points
- 30 year yield 4.272% -3.1 basis points
This article was written by Greg Michalowski at www.forexlive.com. Source