The EURUSD continues to bounce between 1.0520 and 1.0635. I mentioned these two levels over the weekend, and it seems neither buyers nor sellers have managed to break the cycle. Perhaps the upcoming non-farm payroll (NFP) at 8:30 am EST can get the job done.
However, I won’t be trading anything until next week. NFP Friday can be volatile, and I certainly don’t want to hold a new position over the weekend. But that doesn’t mean we can’t look ahead to see where the single currency may go from here.
Last week’s false break of 1.0520 leaves me cautiously bullish for now. That said, I’m not considering buying the pair as I believe the EURJPY to be a more appropriate outlet for longs at the moment.
A close above 1.0635 would expose the current 2017 high near 1.0800. It would also give some credence to the idea that the last four months have carved out an inverse head and shoulders pattern.
On the other hand, a daily close below the 1.0520 area would pave the way for a run at the multi-year lows near 1.0370. The March 2nd false break makes reading this level more difficult, but it does still appear to have some merit given yesterday’s bounce from 1.0524.
I’ll be a spectator for the next 24 hours. A confirmed break from this range could present an opportunity for next week. Either way, I’ll reassess things over the weekend and be sure to include my findings in the weekly forecast.
Want to see how we are trading this setup? Click here to get lifetime access.