EUR/USD flat on Monday, awaiting the Friday jobs report

The EUR/USD pair did very little during the trading session on Monday, as we continue to go sideways. The uptrend line underneath should continue to be support though, and I don’t expect much of a move between now and the jobs number on Friday. I believe that this is going to be a very quiet week, but there’s always the possibility of some headline crossing the wires that could send the Forex markets into a larger move.

If we were to break down below the uptrend line, the market could then go down to the 1.21 handle underneath which is even more supportive. The 50-day exponential moving average is currently just above pricing, and I think that we will see a lot of choppiness in the short term. I think that the 1.25 level above is going to continue to be resistance, and it will be difficult to break above there. If we can break above the 1.25 handle, the market should then continue to go much higher, as I have a longer-term outlook of this market reaching the 1.32 level due to the bullish flag being broken to the upside. Ultimately, this is a market that I think will continue to find value on dips, but if we start to get a lot of negative news coming out, it’s likely that we could breakdown. Remember, we are entering an area that is a very noisy, and I think the one thing that we are going to need more than anything else is some type of conviction.