Global macro overview for 10/10/2016:
Last Friday's nonfarm payrolls slightly disappointed market participants as they printed lower than expected number of employed people. According to the US Department of Labor, US private companies created 156,000 new jobs in September, while market analysts expected the economy to add 171,000 jobs in the reported month. Importantly, the previous month reading was revised up from 151, 000 to 167,000 jobs. Moreover, the unemployment rate increased slightly to 5.0% from 4.9%. In conclusion, the data were worse than expected but good enough to keep the US job creation on track. Nevertheless, the odds of December 2016 interest rate hike has decreased to 8.1% (according to FedWatch Tool by CME Group).
Let's now take a look at the EUR/USD technical picture in 4H time frame. The post-NFP rally did not last long and the important technical resistance at the level of 1.1254 has not been violated yet. The market is still trading inside the congestion zone between the levels of 1.1254 - 1.1120. Because no new higher high has been made, the bias remain bearish.
