The EUR/USD has been hitting new highs on a weekly basis it seems. Last week we tagged the important 1.2500 level that has been in focus for a number of sessions. Since that point, we’ve pulled away a bit and have started to consolidate around the 1.2400 level.

To me, there is still more upside to come. I think there is every chance that the USD will continue to decline and that will mean strength for the EUR/USD. Let’s not forget we have the FOMC Statement and non-farm payrolls this week. They are going to put the USD in the crosshairs. We also have Eurozone CPI which is important as the ECB are looking to unwind their QE program.

I think using the bottom end of this consolidation are is another opportunity to be buying the EUR/USD. But do tread with caution. The fundamental nature of the week will have a big say on what goes on. But if things start moving and there are opportunities to trade with the fundamentals then I think the trend will be strong.

What are the Key Levels Now?

There is still a bit of work to do to push higher. 1.2500 still shapes as a big level that we have to contend with. However, if we can crack that then there is every chance of a sharp move to the upside.

Buying around 1.2369 is my target for Monday.