The EUR/USD has taken out 1.2500, however, it has since pulled back thanks to some USD strength. We are looking for a slight pullback to 1.2350, which is the bottom of the range. We have our stop at 1.2200 and our take profit at 1.2500.
EUR/USD 240 min Chart - EUR/USD is Bullish
The USD is Turning Around
The last week has been all about the fundamental data coming out of the US. We had the FOMC Statement which really didn’t change the market sentiment all that much. And of course US employment, which came in better than expected.
The big moves that we saw as a result of US non-farm payrolls was actually the stock market. The Dow Jones Industrials plunged by 2.5% in what was one of the bigger moves we’ve seen in some time.
The USD however, didn’t do quite as much. That’s not to say that it’s not going to though. The trend has been very strong to the downside and that has been the major driver of the EUR/USD. We tagged 1.2500 throughout the week and that looks like it will be a tough level to crack. Especially if the USD is turning around.
The calendar is quiet this week in terms of economic news for the EUR/USD. So the week is going to be all about sentiment in the market. If stocks continue to decline and the USD gains steam, then we are certain to have a volatile trading week.
Technical Analysis - The Key Levels
The EUR/USD has fallen into a trading range between 1.2500 and 1.2350. The bottom end of that range looks like the place to be buying. While we are going to have a tough time trying to break over head resistance. I suspect that we will test the 1.2500 level again though.
EUR/USD - Key Levels
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