Just by one pip EURUSD managed to close above the 1.1300 treshold yesterday. Although it looks like the Euro has lost some of its strength since the tuesday reversal good bids are still in place. With Nonfarm Payrolls ahead an early decision could be made where to go by the end of the year. As I wrote yesterday I like the Euro lower especially with the prospect of a faster tapering announcement by the FED on their next meeting (15dec - G10 Central Bank Calendar). But only the price action will ultimately show us.
Between 1.1290 and 1.1360 the currency pair is in no man’s land and it make sense to wait for a convincing weekly close. Above 1.1400 the mid-term short scenario is really over. Buyers do not want to see a clear close below 1.1300 already. This increases the chances of testing the yearly low (1.1174) again soon. But it wouldn’t be the first NFPs with no action at all and we meet again at the 1.13 mark on monday.
Nice weekend,
Sebbo