By: DailyForex.com

The EUR/USD pair fell from the 1.37 level during the session on Tuesday, an area that has been both support and resistance previously. With this, it appears that the market did in fact chew through some resistance during the day, but did not get above the actual resistance zone. I believe that the “zone” extends all the way to the 1.3750 level, and as a result I am not ready to start buying yet. In fact, I find it difficult to imagine that this market is going to continue going higher until we yet the nonfarm payroll numbers on Thursday.

Nonetheless, if we do get above the 1.3750 level, I would expect the market to continue higher at that point. After all, it would be a major break of resistance, which of course is more important than whether or not the market “should” do something or not before the numbers. After all, the markets to do in fact trying to anticipate these numbers sometimes, so it is worth paying attention to.

Pullbacks could be buying opportunities as well.

Pullbacks at this point time should be buying opportunities from what I can see. Again, it’s a bit difficult to imagine this market making a significant move before the announcement, but I really find it difficult to imagine this market breaking down drastically. I think it that a lot of support is to be found below, and as a result I much more comfortable going long at the moment. This is one of those markets that could either break out to the upside, or stay well within the consolidation area that we have been stuck in for some time.

Either we get the break out, or we stick around between the 1.35 and 1.37 levels in my opinion. In fact, if this nonfarm payroll number announcement on Thursday can’t get this market moving, it’s very likely that we could be stuck in this range during the totality of the summer, which ended up itself can be quite profitable if you are willing to look to the shorter-term charts.

EURUSD 7214

Related Articles
  1. Investing News

    Bill Gross: It's a Xanax Existence for the 99%

    Read about the investment letter from famed bond king Bill Gross for 2016. See how he says the 99% are living a Xanax existence while the 1% prosper.
  2. Saving and Spending

    Social Security: Navigating it with Your Clients

    Many people don’t realize how confusing Social Security can be until they're face to face with taking it. Here's how to talk to clients about it.
  3. Saving and Spending

    Where Does Bill Ackman Keep His Money?

    Learn about where prominent hedge fund manager Bill Ackman keeps his money. See how his short position in Herbalife has not been successful so far.
  4. Your Practice

    Advisors: Why You Should Never Skimp on Technology

    A recent Fidelity study shows that advisors who embrace technology are more successful. Here are some key steps to gain a competitive advantage.
  5. Financial Advisor Technology

    Robo-Advisor, Asset Manager Marriages on the Rise

    Invesco is the latest asset manager to acquire a robo-advisor. Here's a look at what it means and how it will work.
  6. Mutual Funds & ETFs

    Pimco’s Top Funds for Retirement Income

    Once you're living off the money you've saved for retirement, is it invested in the right assets? Here are some from PIMCO that may be good options.
  7. Saving and Spending

    What Baby Boomers Need to Know About IRA RMDs

    Mandatory minimum distributions from traditional IRAs and qualified plans cannot be avoided. But there are several ways to minimize their impact.
  8. Your Clients

    How to Construct an Annual Review for Clients

    One of the best things that advisors can provide to clients is an annual review of their financial situation. Here are some guidelines.
  9. Personal Finance

    Seven U.S. Destinations You’d Swear Were Overseas

    If you can't stop thinking about safety (or your budget) as you plan your vacation, try these seven very-exotic-feeling places right here in the U.S.
  10. Stock Analysis

    Elliott Management: An Activist Investor Analysis (HES, CTXS)

    Learn about the activist investor strategies used by Elliott Management. Read about the fund's positions in Hess Corp., Citrix and CDK Global.
RELATED FAQS
  1. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  2. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  3. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  4. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  5. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  6. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
COMPANIES IN THIS ARTICLE
Trading Center