The EUR/USD pair tried to rally for the Monday session, but as you can see pulled back at the 1.37 region. With this, the market formed a shooting star. This shooting star is placed at an interesting place for me, as the 1.37 level has offered resistance lately. The area should offer a lot of resistance all the way to the 1.38 level, which was the recent high. Because of this, I think that the market is probably at risk of falling from here. However, I don’t think that the market is going to be falling apart in the meantime, rather that the market needs to pull back and retain the consolidation area that we have been in for some time now.
The Euro has been strong lately, but the US Dollar has done fairly well against many other currencies. This is partly because the Federal Reserve has stated that they are on the path to continuing tapering off of quantitative easing, which should be good for the Dollar itself.
Jobs in America will be crucial.
The jobs numbers in America will continue to be followed, and could move this pair quickly. The market tends to focus on one side of the Atlantic or another, and almost never on both. With that, the news will more than likely shape the moves going forward, but I have a hard time believing that this market is going to move rapidly anytime soon. This market should continue to be sideways as we struggle to find some kind of longer-term direction. This is a pair that quite frankly is for short-term traders only, and longer-term traders that I know are simply ignoring it at this point in time. The larger moves have been horrible, and because of this a lot of my friends are now only using this pair for a tertiary indicator, and using the direction of the market to decide how to trade the Euro against many other currencies such as the Canadian dollar of the Japanese yen. At the moment, I have no real interest in risking capital on this market.
