Hello Traders,
As the Euro is the most heavily traded currency against the USD in the USD Index, it is THE currency pair I focus most heavily each day as it helps point to the longer term direction of the Buck.
This week, as mentioned via SMS, we have the Non-Farm Payroll Report on Friday. Other than the FOMC meeting minutes and interest rate changes by the FED, this is the 2nd most important fundamental announcement with GDP coming in third. The US just had a better than expected GDP report and that lent continued strength to the USD against the Euro. New Homes today we better as well, but the USD weakened slightly on the announcement and we believe that occurred because the US Stock Indices were higher on the announcement. The market topped out @1.3966 where strong supply came in Jan 29 and the market took its last nose-dive to 1.3853. The market has formed a daily pivot @ 1.3933. We need a break of this with an hourly close below it to lend further confirmation of a retracement back down near 1.3875. Then, we just have to wait to see how the market is “behaving”, and what steps to take next. For now, we’re just watching / patiently waiting.
