The EUR/USD pair continues to grind higher, as the Thursday session ended up seeing the pair close above the 1.30 level again. There is a trend line that this market has been using as support, and it looks like it will continue to respect that line for the time being.
The pair looks like it is focusing on the fact that the Federal Reserve is willing to ease as long as it takes, and ignore the amount of borrowing that is presently being done this will continue to devalue the US dollar, and although we have Non-Farm Payroll numbers today, it looks as if the markets have already decided that it will be a Dollar negative day.
Sometimes, the market shows its hand early.
Sometimes, the market will show what it wants to do ahead of time. This is a statement not necessarily on this pair by itself, but the fact that most pairs look very dollar negative at the moment. Because of this, it appears that the nonfarm payroll number will punish the US dollar in general today, and as such any gain in the Dollar should be sold, and that is true in this pair as well.
The fact that we have closed above the 1.30 level suggests to me that we will see higher prices. The 1.33 level above is the top of a big band of noise that is currently sitting above price in this market. If we can get above the 1.33 level, we could be targeted are seriously larger moves at that point.
Nonetheless, we think this pair is bullish overall, at least for the short-term. Longer-term, we don't know what will happen obviously, but it does make sense to mention that the European Union is far from being out of its troubles. In fact, if it weren't for the Federal Reserve, one has to wonder where this pair would end up going.
We are willing to buy pullbacks on the short term charts if we get some type of weakness in reaction to the announcement today. As long as we stay above the trend line that is keep in this market higher, we simply will not sell.
