This week’s data points from the US have failed to impress, and Friday’s NFP report also disappointed relative to expectations, though the 209K reading is above 200K and is decent in the general scheme of things. However, it opens up the door for some short-term consolidation. Let’s take a look at the EUR/USD, GBP/USD and NZD/USD.
The EUR/USD is rallying in the strongest 4H candle seen so far since declining in July from 1.37 to 1.3367. However, we should monitor for resistance in the 1.35-1.3510 area. A break above 1.36 however would return the pair to sideways mode instead from its current beraish mode. The GBP/USD was bearish after the softer UK Manufacturing PMI. The NFP reaction did help it find support within the session, but the it still has downside risk toward the 1.67 low from May/June. The NZD/USD formed a double bottom and suggests some short-term consolidation/bullish correction. It has respected the 200-day SMA and a rising trendline from Sept. 2013, so if it pushes above 0.86, it could be a sign of bullish continuation.
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