Euro hasn’t achieved much over the last fourty-eight hours, but it has managed to print an inside day formation on the daily chart. Inside day formations are usually associated with a pending breakout since one, or more consecutive day’s trading is contained within the previous day. In other words, the trading range is getting narrower, and a breakout may be coming. It is no coincidence the inside day has formed ahead of Non-Farm Payroll numbers due out on Friday. The market often consolidates awaiting what many traders consider the super bowl of all fundamental reports. The question on my mind, will $1.22 hold support or will Euro break lower?

EUR/USD probed lower on Tuesday, breaking down to $1.2150 before a decent rally back to $1.23.  Tonight the currency pair is hovering just below $1.23, but didn’t close in bargain territory. As of right now, I still think a false breakout to $1.24 could happen. I’m not interested in the $1.23 handle, but $1.2420 is interesting to me. Overall, not very clean in my opinion.

Best of luck,

Ryan