The EUR/USD has fallen back from its highs, thanks mostly to the Greenback which made up some ground on Monday.

Last week we tagged 1.2500, which was an important level in for us. The Euro has been charging higher recently and the trend has been strong to the upside.

Early this week it looks to me like we are seeing traders position themselves ahead of the big economic releases we’ll have out of the US later in the week. We are going to be hit with the FOMC Statement, which is Yellen’s last as well as US non-farm payrolls.

That said I am still bullish on the Euro and will be looking to buy around key levels.

What are the Key Levels?

The big level I’m interested in is 1.2300. Not so much as a buying level, but as an indicator of trend. 1.2300 has been a long-time resistance level. Now we have to see if it can act as support. As we grind lower over the course of the week – if in fact, that continues – we need to see if it holds.

So if the price action looks bullish above 1.2300 then that might be a good level to consider buying. But should we push lower, then that might mark a temporary high for the time being.