Good NFP employment figures drove EUR/USD to Daily Pivot (DP) momentarily on Friday but buyers jumped straight back into the market to produce the week’s high and closing above the psychological high at 1.3705.
Back at the top of the Bullish Channel #1, EUR/USD is once again testing the previous 2013 High of 1.3710 which was broken for the only time this year, back in October when EUR/USD reached 1.3831. If PA can clear this strong Resistance Confluence #2 of 1.3700, Channel top and Resistance Trendline it seems unlikely the buyers won’t go searching for that October mark. Pivots remain Bullish and an untested DP/WP combo should provide enticement for PA to pullback. Tough not to be Bullish but DP test and the strong resistance has me a little Bearish.
The Day Ahead
As above – I’m happy for ‘with trend’ Longs but a cheeky Short to DP is ok after a lower High with a healthy respect for potential pullback from Resistance today.
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