The EURUSD made a significant move on Friday. After consolidating for three weeks, the single currency broke above the 1.1875 handle, a level that has held the pair in check since August 2nd.
We’ve had our eye on this level for some time now. We also discussed the ascending channel you see below on Thursday of last week. At the time, it seemed that the most likely scenario would be another pullback into the 1.1670 area. Apparently, the bulls had other plans.
With Friday’s close above 1.1875, there isn’t much to prevent a retest of the 2012 low at 1.2040. Just above that level we have ascending channel resistance which could become a factor again as it did in early August.
A rotation lower into the 1.1875 area would likely encounter an increase in buying pressure. Only a daily close (5 pm EST) below 1.1875 would negate the bullish outlook toward 1.2040 and re-expose the 1.1670 support area.
Keep in mind that Wednesday features the ADP employment change and prelim GDP figures for the U.S. As usual, the main event is Friday’s non-farm payroll at 8:30 am EST.
We’ve had our eye on this level for some time now. We also discussed the ascending channel you see below on Thursday of last week. At the time, it seemed that the most likely scenario would be another pullback into the 1.1670 area. Apparently, the bulls had other plans.
With Friday’s close above 1.1875, there isn’t much to prevent a retest of the 2012 low at 1.2040. Just above that level we have ascending channel resistance which could become a factor again as it did in early August.
A rotation lower into the 1.1875 area would likely encounter an increase in buying pressure. Only a daily close (5 pm EST) below 1.1875 would negate the bullish outlook toward 1.2040 and re-expose the 1.1670 support area.
Keep in mind that Wednesday features the ADP employment change and prelim GDP figures for the U.S. As usual, the main event is Friday’s non-farm payroll at 8:30 am EST.