The EUR/USD Tuesday, but as you can see we still maintain in the area of 1.35, an area that has been support for some time now. That being the case, it doesn't surprise me that the market did get a little bit of a bounce towards the end of the session, and as a result I am looking at the area as a potential "buy zone." Because of this, I feel that a break of the highs from either the Monday or Tuesday session, which is essentially the same thing, is a sign to start buying the Euro.
The Euro should continue to appreciate against the Dollar in general, and this will be especially true as long as the jobs market in the United States is relatively weak. This is because the Federal Reserve simply will not be able to taper off of quantitative easing, and that should continue to put pressure on the US dollar in general. As I have stated several times, the Euro is essentially the "anti-dollar", and as a result the markets tend to run towards the Euro anytime the Dollar gets whacked.
Nonfarm payroll numbers on Friday.
The nonfarm payroll numbers come out this Friday, and I believe that will be the greatest influence on this market. It would not surprise me at all if the Euro appreciates between here and there as traders try to play the most likely scenario, which of course is that the jobs number is relatively weak, and as a result the Dollar will continue to lose value. Money flows to Europe in that situation, and as a result the pair appreciates. This is not only because of people buying the Euro, but it also has to do with the stock markets in the European Union having money flow into them, as they obviously needed to be purchased in Euros.
As far as selling is concerned, if we did managed to break down below the 1.34 handle, I think the market could drop to the 1.32 handle in the short term, but I suspect that support down in that area will simply be a buying opportunity in the long run.
