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EUR/USD is the meat in the sandwich

The rebound high in the EUR/USD yesterday was set at 1.0818, which was actually just short of the current 200 day moving average (now at 1.0823). The drop back from that high today has so far delivered a low set at 1.0772, which is just ahead of the 100 day moving average (now at 1.0764). So, if I wax lyrical about that and consider those moving averages as two slices of bread, then the price action seen so far today is the meat in the sandwich. Now, there is no guarantee the Euro will break outside of that 1.0764-1.0823 range today, because we know the wash-through with the Yen is stunting the price action, as indeed it certainly did yesterday. However, the delivery of a really under-sized, or out-sized payroll report today could shift the emphasis back on the dollar (and hence the Euro) and less so on the Yen, which has been the big market story of the past two days. The EUR/USD is currently trading at 1.0779

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