The EUR/USD pair had a strong move to the upside during the session on Friday and even slammed into the 1.10 level. This was predicated mainly upon the idea of a less than stellar US jobs report, as the markets had to readjust their interest-rate hike expectations out of the Federal Reserve. Ultimately though, this is a pair that features the Euro, and that’s the one thing you really need to pay attention to. After all, the United States is still doing much better than Europe, and this was a bad miss for one month only. Quite often, the employment numbers tend to have anomalies such as this, so this point time I have to assume that the downtrend is still very much alive. Because of this, I have no interest in buying this pair at the moment.
Selling rallies, this could be one of them
I continue to sell rallies in this pair, and this quite rightly could be one of them. I cannot help but notice that the 1.10 level offered a bit of resistance, as the market could not stay above there yet again. With this, I’m going to look for short-term resistive candles in order to start selling. I have a yellow box on the chart which represents the entire resistance barriers far as I’m concerned, and on top of that you can see that there’s probably a cluster of noise only to the 1.15 handle. If we can get above 1.15, I feel at that point time the trend has changed. The meantime, I think that this is simply going to end up being a selling opportunity yet again.
If we break down from here, I think that we will probably run into support at the 1.0750 level. If we get below there, we should then head to the 1.05 handle which of course was so supportive in the past. If we can get below there, the parity level will be calling. It be interesting see what happens, but right now I don’t buying the rally quite yet.
