US stocks are lower with the NASDAQ and S&P index each down about -0.67%. US yields are higher with the 30 year yield at 5.0%. The 10 year yield moved up to a new high for the year at 4.887% before rotating modestly to the downside of 4.834% currently.
The US dollar moved higher versus most of the major currencies, but corrected lower as yield rise slowed and retraced (and so did US stocks). They are in sync with each other.
Having said that, there are some key technical levels in play:
EURUSD: The EURUSD move down to test the key 1.0483 level and found support buyers against that level. It would take a move below that level to increase a bearish bias. On the top side the 200 hour moving average 1.0529 remains resistance. Moving above that level will have traders scratching their heads as to the dollar’s direction given the stronger US jobs report
USDJPY: The USDJPY spiked above its 100 and 200 hour moving averages at 149.13 and 149.20 respectively. The high price extended above 149.50 target to a high of 149.53 before rotating back down to retest its 200 hour moving average (at 149.20). That moving out to stall the fall and the price is currently back higher. Stay above the moving average keeps the buyers in control. A move below it and the 100 hour moving average would disappoint the buyers. Getting above 149 50 and Stan above is more bullish now.
GBPUSD: The GBPUSD move below its 200 and 100 hour moving averages at 1.2151 and 1.2125, but stalled against the swing low from Wednesday’s trade the swing low from yesterday’s trade at 1.21056. On the top side, there is a swing area between 1.2159 and 1.2167 that if broken to the top side, would have traders wondering.
USDCAD: The USDCAD is waffling up and down as traders in that currency are being influenced by stronger US jobs and stronger Canadian jobs reports released earlier. The price trades above and below its 100 hour moving average at 1.37115 as it fights for a clearer directional bias.
AUDUSD: The AUDUSD fell below its 100 hour moving average at 0.6339. That will be the barometer for traders today. Stay below is more bearish. Move above and we could see a rotation back toward 0.6359 – 0.6364.
NZDUSD: the bigger picture for the NZDUSD as a pair remaining between its value area low and value area high between 0.5879 and 0.6032. In between sets the 100 and 200 bar moving averages on the 4 hour chart and 0.5931 and 0.5939. The price has been trading above and below those moving averages since the initial decline of the jobs report. At some point either the buyers are going to take control or the sellers are going to take control and move the price away from those moving average levels. We currently trading between 0.5938.
