The EUR/USD pair initially fell during the day on Wednesday, but found enough support near the 1.11 level to turn things back around and bring buyers back into the marketplace. With this, the market looks like it is ready to continue to go much higher, and the move that we have seen over the last 2 sessions has been rather strong. With that being the case, the market looks as if it will probably reached the top of the consolidation that had been contending the market for some time now, meaning that I believe this market is heading to the 1.1450 level given enough time.
That being said, the Friday session features Nonfarm Employment Numbers, which of course can move this market quite drastically. With that, you have to be able to deal with the volatility that’s coming up, but ultimately I think that any type of pullback should end up being “value” in the Euro.
1.10 is the floor
The 1.10 level below is the floor in this marketplace, as far as I can see at the moment. As long as we stay above there, the market should be one that you can only buy, as it should then head to the aforementioned 1.14 handle. If we can break above there, we will then test the 1.15 level, and then the market breaking above there would be a massively bullish market going forward.
Ultimately, if the market breaks above the 1.15 level I feel that it becomes a situation where you are looking at a “buy and hold” type of market, and perhaps even a situation where you can continue to buy the Euro every time this market dips. I believe at that point in time the trend will have changed completely, and that is a situation where it will be much easier to trade this market as we have been chopping around for some time.
On the other hand, if we do break down below the 1.10 level, then the market should continue to drop, perhaps heading back towards the 1.06 handle. With this, I would rather see this market break out just simply because it’s the easier to trade now.
