By: DailyForex.com
The EUR/USD pair had an interesting session on Friday as the nonfarm payroll numbers came out. While the number was a bit better than expected, it wasn't exactly a home run so to speak, and as such the markets really weren't sure which direction to run. In the end, it looks like a very little was decided. To be honest, I find this is normally the case in this pair on the nonfarm payroll Friday.
As you can see on the chart, there is an uptrend line that this market has been following. This is been true since the middle of the summer, and as such this is a great tool to decide which direction you would like to be in this particular pair. However, the action on Friday is a little bit disconcerting if you are bullish of this pair.
The obvious resistance that is been shown buying the shooting star for the Friday session just above the 1.30 level suggests that we may possibly be running out of steam for this rally. Certainly, many of the pundits out there suggest that this pair has gone too far too quick, and that a pullback is all but necessary.
Shooting star, 1.30, yet a trend line
This patient this trend line that I have on the chart is the one thing that absolutely has to be broken down in order to trigger any new selling positions from my point of view. I think it is very possible that the market will circle focus on things going on in Europe yet again, but who knows when that'll happen? The truth is that this pair has essentially become a battleground of drama, in other words a simple gauge of which batch of negativity traders are focusing on.
.jpg "EUR/USD Daily")
The Federal Reserve will continue to be ease as long as it takes, and probably farther than that based upon historical precedence. This of course will weigh upon the US dollar in general, so I do feel that overall the buyers in this pair will be to go higher, except for when we start to focus on problems in Europe. Essentially, I feel that it will simply come down to headlines and that's why I am not particularly pressed to trade this market but will use the trend line on the chart as a guide. As long as we are above the trend line, I am looking for supportive candles to buy. If we fall below it, I would then be looking for reasons to sell. In the meantime, I feel that the Euro can be bought or sold against other currencies with much less the faculty