EUR/USD
The EUR/USD pair broke down during the session on Thursday as we await the jobs number. That’s a very bullish sign, and I believe that pullbacks now will offer buying opportunities off short-term charts, and the 1.10 level above continues to be a target. If we break above there, then the market will continue to go even higher. The market should continue the explosive moved higher and if we get a jobs number that is strong, that should only add more fuel to the fire. I recognize that there is a gap below that will have to be tested the eventually, but right now it doesn’t look like the markets ready to do so. With this in mind, I think that the market will favor the EUR in general.
GBP/USD
The British pound initially fell during the day but found enough support underneath the 1.2850 level to turn around and form a bullish candle. We continue to grind sideways overall and I think that this is a “buy on the dips” type of market. With the jobs number coming out today could be rather noisy but I think that longer-term this pair continues to find buyers. The British pound has broken out significantly in the move above the 1.2750 level has been very important. As long as we stay above there, I have no interest in shorting I believe that buy on the dips on short-term charts will probably continue to offer value. If we broke down below the 1.2750 level, the market should then break down to the 1.2550 level underneath. I have a longer-term target of 1.3450, but we need to break above the 1.30 level in order to continue the move higher and find plenty of buyers. As momentum picks up, I will be adding more size to my position.
