The Euro has rallied significantly to kick off the trading session on Thursday but gave back enough of the gains to show signs of resistance yet again at the 1.19 level. Because of this, I think that we are going to be waiting on the Non-Farm Payroll figures for the bigger move, but it is very likely that the bigger move will be to the upside and perhaps reaching towards the 1.20 level.
In the meantime, short-term pullbacks could be buying opportunities for those of you who are inclined to trade short-term charts. I believe that the 1.17 level is essentially acting as a bit of a “floor” in the market right now, so it may be worth paying attention to. A pullback to that area will represent quite a bit of value in people are most certainly going to be willing to take advantage of that.
EUR/USD Video 07.08.20
To the upside, I believe that we break above the 1.20 level as well but when you look at the trajectory of this rally, we clearly need to kill some time before trying to push too far to the upside as although this has been exacerbated by dollar longs being covered, the at the end of the day momentum can only last for so long. While I do believe in the uptrend and I have no interest in shorting, I also recognize that we are a bit stretched at these levels. Because of this, I would be very cautious here, but I do recognize that it is basically a question of whether or not you are flat, or long. Shorting is not even a thought.
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