Euro fairly quiet during the trading session on Thursday

The EUR/USD pair went sideways during most of Thursday as we await the jobs number out of the United States. I think that the market will struggle to get above the 1.21 handle, but if we were to break above 1.2150, the market could go back into a bullish tone. However, as we are hanging about the 1.20 level, I think we are trying to figure out where we are going to go longer term. I think this jobs number is going to be the final “nail in the coffin” so to speak, as to where we go next. If we were to get a very strong jobs number out of the United States, that will probably drive this pair much lower, perhaps looking towards the 1.18 handle.

The alternate scenario of course is that we get a very soft jobs number, which could drive this pair higher. However, I think that we are probably going to see several months’ worth of US dollar strength, and summertime could be good for the greenback in general. Overall, the recent breakdowns in the EUR/USD, GBP/USD, and AUD/USD pairs were very strong, and of course should not be ignored. I think it’s difficult to ignore the signs, and I think that although longer-term we may have a reversal, and currently looks as if the US dollar is going to be one of the big winners and the next several months.