Starting the Forex week, Forex traders should keep their eyes on the Highs/Lows following last Friday’s Non Farm Payrolls report. The NFP figure was much worse than expected and triggered an across the board exit from the USD. As such, if we see Forex pairs trading beyond the spikes of Friday, it could trigger further momentum, as will show that the exodus from the USD continues. On the other hand, if Forex pairs from Friday’s moves it will indicate that risk and fear continue to be embedded in the Forex market, and until some encouraging data or solution emerges from the EU, traders will favor risk selling.
After a huge collapse since falling below 1.3000 last month, the EURUSD saw signs of life on Friday. If the Forex pair can maintain its current move above 1.2400, and build up support at that level, it could trigger a breakout move higher if it surpasses last Friday’s high of 1.2455.