EUR/USD Forecast January 5, 2017, Technical Analysis

The EUR/USD pair rallied on Wednesday, testing the 1.05 level but not breaking it. Above that handle, I recognize that there is a lot of resistance, extending all the way to the 1.07 level. So, my strategy is to simply wait for exhaustive looking failures near the 1.05 level on short-term charts insert shorting them. For good measure, the 50-day exponential moving average is on the chart, showing just how bearish this market is over the longer term. I believe that we will have a bit of a pullback due to lack of volatility ahead of the jobs number over the next several sessions. I remain a seller and not a buyer.