This week could be a double wammy for the EURUSD on the downside or a horrible short squeeze

April 28, 2014 by Nanakiver3

The main events for the EURUSD this week will be the inflation data I mentioned earlier today and the non farm payroll data out this Friday at 1.30 GMT. Despite what is a tightening of monetary policy by the Fed the market seems to be waiting to see if this recovery has really got any legs. In trading today we saw GBPUSD trade new yearly highs and EURUSD nearing the 1.39, this doesn’t appear like a market that is pricing in rate hikes from the states and the bond market is saying the same thing.

usdindx_m14daily

DXY Daily chart

Looking at the dollar index, the last NFP saw us trading near the 80.72 level, should this Fridays data disappoint again and we will be looking for a test first off of the the 79.34 and then the 79.

On the upside should we see a strong number in the 250-300k region then the dollar should rally along with equities.