A Market On Hold

Yesterday's choppy market gave us very little with which to work. It appears that the EUR/USD pair is consolidating ahead of 1.3240 in anticipation of its next move. Daily studies are bullish, but overbought. Many technicians are looking for 1.3500 on the pair by year end.

The market is also looking to major economic data being released this week. Last week's US ISM manufacturing number fueled the rally in the Euro. Since the US economy is largely service-based, look for today's ISM non-manufacturing number to move the market as well. Thursday will bring the ECB rate decision and Friday has the US NFP numbers. Each of the events are expect to move the market. Volatility has increased considerably in anticipation.

We will still look to ride the next wave higher as long as the weakness in the dollar continues. We'll keep an eye on our resistance level at 1.3375 as a setup. A break of support at 1.3240 changes everything.