That being said, the market is at the top of the overall range, and it makes a certain amount of sense that we would see a little bit of hesitation.
That being said, the market is at the top of the overall range, and it makes a certain amount of sense that we would see a little bit of hesitation. If we do pull back and break down below the bottom of the candlestick we just printed, then it opens up a potential move to the downside, perhaps down to the 50-Week EMA. The 50-Week EMA sits near the 1.06 level and is starting to rise. That being said, it’s also worth noting that the candlestick for the week looks a little bit like a shooting star, but that’s probably a stretch to suggest that it is. However, it is a market that continues to look at the Federal Reserve for some type of guidance, because quite frankly traders believe that there are reasons that the Federal Reserve may change its monetary policy soon, and if that’s going to be the case, it’s difficult to imagine a situation where the US dollar would do well. However, if inflation continues to be a major issue, then they will stay tight.
The Non-Farm Payroll announcement was in line with expectations, so it doesn’t necessarily influence where we go next. That being said if we continue to see inflationary pressures, that could send this market back around, and send this market lower. On the other hand, if inflation seems to be falling, that could help the Euro.
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