The EUR/USD pair was somewhat choppy during the day on Monday, as we continue to bounce around the 1.1750 level. If we can break out to the upside, the market should then go to the 1.18 level above. Overall, I think this market is trying to find some type of base underneath, and the lower than anticipated jobs number weighed upon the US dollar, and I think that we are getting ready to try to make a move towards the 1.20 level over the longer term. I think that the recent breakout above the 1.15 level was very bullish, and should continue to be for the market’s going forward. I think that dips will offer buying opportunities, and although it will be very choppy, the longer-term charts do suggest that the Euro goes much higher.
The 1.20 level above is massive resistance, and it’s not until we break above the 1.21 level that I would think that we can continue to go higher. I do expect that to happen, but is going to take a lot of work. Based upon the recent breakout of consolidation, the market should go looking towards the 1.25 level over the longer term. That should give us plenty of opportunity to buy the dips and take advantage of the volatility that certainly will be a major part of this market. Remember, the Federal Reserve is likely to raise interest rates, but at the same time it looks as if the European Central Bank is going to continue to look as if it is going to tighten its monetary policy as well. With this, I think that the market is going to continue to rise as global growth seems to be reasonably steady and likely to continue over the next several months.