The EUR/USD pair broke higher during the course of the session on Thursday, as the 1.11 level below continues to offer support. However, the resistance of the 1.13 level has me thinking that this pair is going to be very choppy in general. Ultimately, I feel that the market should continue to be very choppy even though we have the jobs number coming out today. Yes, I know that the volatility in the currency markets will mean that there could be opportunities in this pair, but it will be short-term trading at best.
Even if we break above the 1.13 level, I think that the market will continue to find selling pressure all the way to the 1.15 handle. If we break above the 1.15 level, then the market should continue to go much higher from a longer-term perspective. However, that’s not going to happen today so I am going to be a little bit cautious when it comes to the idea of going long.
There are alternatives though
I do think that if we fall significantly, if we can find support somewhere near the uptrend line below, the markets will more than likely find buyers to push higher again. After all, the nonfarm Payroll announcement have a long history of moving the markets around and pushing in one direction too far. Ultimately, if we get some type of impulsive move, I think it’s easy to go against it as typically the market will overreact and then eventually settle on no real change in general.
That being said though, I think that if you are nimble enough, there could be very significant trading opportunities going forward during the session. However, be quick to take profits and don’t get too greedy, that’s an excellent way to lose a lot of money during a Nonfarm Payroll announcement. Ultimately, I do think that the upward pressure below continues to push this market higher given enough time. After all, on the longer-term charts it looks like we are building pressure higher and higher.
