Article by: ETO Markets

Recent data indicated that the labor market is still tight. According to the JOLTS Job opportunities report, the number of job opportunities stayed relatively stable at 8.5 million on the final business day of March, while the ADP poll revealed that the private sector gained 192K new posts in April. Additionally, the US stated that Non-Farm productivity increased by a pitiful 0.3% in the first quarter of the year, despite unit labor costs rising 4.7% in the same period, suggesting an upward risk to inflation.

The daily chart indicates that around $… , the 23.6% Fibonacci retracement, sellers resisted advances for the second day in a row. The 20-SMA on the same chart stays flat just above the indicated level, but the lengthier SMAs continue to slope upward well below the current price. Ultimately, the risk was skewed to the downside as technical indicators maintained within negative levels with inconsistent firmness. 

The pair is presently moving below the bearish 20- and 100-SMAs on the 4-hour chart, although it is still slightly above the 200-SMA. Though they have bounced back from their early lows, technical indicators are still below their midlines and are losing their upward momentum, indicating that buyers are not now interested.