EUR/USD rallies during Friday session

The EUR/USD pair initially fell during trading on Friday, but after we get the jobs number out of America, things calm down a bit and people started to buy the EUR/USD pair again. I think that the market will eventually try to reach towards the top of the recent consolidation area, meaning that we could go to the 1.24 level rather quickly, if we can get some type of catalyst. This market looks likely to continue to wind up in trying to build up momentum to the upside. If we can break above the 1.25 handle, the market should then go much higher. I think at this point it will do so, but it’s going to take some work.

The alternate scenario of course is that we break down a little bit from here, but I think there is more than enough support at the 1.21 level underneath to keep the market afloat. When I look at the longer-term charts, it looks like we may sideways if we can build up a bit of momentum, but I think this is a market that will either rally or consolidate. I don’t have any interest in shorting this pair, least not until we break down below the 1.21 handle, something that doesn’t look very likely to happen in the short term. Expect volatility and keep your position size small until we get some type of clarity that we can take advantage of. Once the clarity comes, then you can add to your position and take advantage of the overall bullish attitude.