The EUR/USD pair rose initially during the course of the session on Friday in reaction to the Nonfarm Payroll numbers, as the numbers missed significantly. We anticipated seeing 202,000 jobs added during the month of September, but did not get that. In fact, we missed by over 50,000. Because of this, the market looks as if it initially tried to get away from the United States, but at the end of the day the US dollar is considered to be a “safety currency.” With that, it makes sense that traders would have got involved in the treasury market of course, and that obviously takes US dollars.
The shape of the candle of course is very negative, so having said that it looks as if the market will probably continue to struggle to go higher over the longer term. We have recently been consolidating between the 1.11 level on the bottom, and the 1.13 level on the top. With that, expect a lot of volatility but I believe there is nothing but confusion to be had in the market.
Uptrend line
There’s an uptrend line below, which of course should continue to put pressure on the upside as well. Because of this, the market will be choppy to say the least, and quite frankly I’m not interested in putting a lot of money into this marketplace. However, recognize that a lot of short-term traders will be attracted to this type of action as the markets have been so consolidative recently.
