The EUR/USD pair rose for the session on Tuesday, but remained underneath the 1.36 handle by the time the market close. This looks like simple consolidation to me, but I do recognize that the 1.36 handle is indeed going to be something of importance for this market going forward. If we can get a daily close above that level, I be more than willing to buy the Euro and aim for the 1.38 handle.
Ultimately, I believe that we are going to have a couple days of noisy action but have learned that I don't have to understand the move, just follow it. That may be what this move is about to be, I don't know at this point in time. However, I do know that there is a significant amount of support at 1.35 below, and I would not be a seller until we get well below that area, and probably aim for the 1.33 handle at that point in time.
It's all about jobs and tapering.
This pair is going to be focused on jobs in the United States in the possibility of tapering out of the Federal Reserve. I hate typing this yet again, but that really is what the market is focusing on at this moment in time, as the Euro is the "anti-dollar", it moves inversely to the fate of the greenback. Not only in this pair, but just in general.
If we got below the 1.33 handle, I could see this market going down to the 1.30 handle, but that's going to take a very strong jobs number in order to push the market down that far. Because of this, I think that over the next several sessions we really are going to be doing much, and therefore and simply observing at this point in time and not risking any real money.
Adding to all of that is the fact that we are in the month of December, and in two weeks the markets will absolutely dry up with liquidity issues being for Friday, as most traders will be away for holiday.