The EUR/USD pair fell during the session on Monday, essentially stalling out yet again as the market has been so parabolic, and now we are starting to see it take a rest. That makes sense, that happens quite a bit and with Friday being nonfarm payroll numbers, I find it difficult to think that the market will move drastically between now and then. Even if it does, we could fall apart slightly, but at the 1.37 level there should be plenty of support.
I see there being a cluster of support at the 137 level, so quite frankly I would like to see this pair pullback to as we could see buyers stepping in and pushing this market higher. After all, the Euro is the "anti-dollar", and as long as there is concern about the Federal Reserve been able to taper off of quantitative easing, you can expect the Euro to gain over the long-term as the greenback gets beat up.
Nonfarm payroll numbers will matter, because they could give insight going forward.
With all that being said, I believe that the nonfarm payroll numbers are exactly what this market will be waiting on, and because of that it might be a while before we get some type of significant move in this market. I think that the move down to the 1.37 level will probably be more of a slight grind than any type of meltdown, and because of that I think that it's likely this market might favor the sellers of the next couple of days, but they won't exactly be raking it in either.
Going forward though, I think the announcement will matter, and once the jobs numbers come out softer than needed to taper off of quantitative easing, I see no reason why this market will continue to go higher, probably to the 1.40 level over the next couple of months. In fact, I think every time this pair dips, you can probably start buying it as the Europeans have exited a recession recently which of course makes the Euro more attractive also.
