The Euro has been a bit weak at the moment, as we have got the Non-Farm Payroll numbers, but we continue to see the USD ignore that.
The Euro has slipped a bit during the trading session on Friday as we continued the overall downward pressure, but it is probably worth noting that this was particularly interesting as the non-farm payroll announcement was weaker than anticipated. This, of course, is something that you would think would work against the US dollar, but it has not. This shows to me, at least, just how weak the Euro is, or maybe one way to put it, it shows just how stubborn the US dollar is going to be.
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Ultimately, we are basically in the middle of an overall range, and that is worth paying attention to, with the 1.18 level above being resistance and the 50-day EMA perhaps causing resistance on the way to that level as well.
Range-Bound Market Outlook
Falling from here could open up a move down to the 200-day EMA, which is right around the 1.15 level, and underneath there, you would have a floor near the 1.14 level. I suspect that this is a pair that will continue to consolidate in general, as we just don’t have the momentum to make big moves. Therefore, if you are a short-term range-bound trader, you might be interested in swing trading this pair, but I would not be looking for massive moves.
I think you will have to be very patient with any trade that you take, and with that, I think you have to look at this as a market that is basically in the middle of everything, so it is difficult to get aggressive one way or the other. That being said, if the US dollar takes off against other currencies, then it obviously will move here as well. So, pay attention to how the US dollar is behaving against the Japanese yen, which it looks very strong against, the British pound, which it looks like it's starting to wear down, and other currencies like the Canadian dollar and Swiss franc. The move to the US dollar was a bit counterintuitive on Friday, so let’s see what happens on Monday, because if that continues, that could be a big one.
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