Euro is now in the zone of rejection

Ever since early September of last year the EURUSD pair has been resolutely prevented from getting below a zone that approximates the price line between 1.28 and 1.30. No matter how bad the news for the Single Currency and no matter how good that for the Greenback, this has been the case. The European Central Bank (ECB) is on an easing policy while the noises out of the Federal Reserve have been towards the so-called tapering of Quantitative Easing. All of this should have, by traditional Fundamental Analysis standards, resulted in a sustained downward trend in the pair.

Just like we have seen, for example, in AUDUSD and, of course, in the US dollar price of Gold.

A lot will now depend on the U.S. Non Farm Payrolls report later today. A good number here will drive the US dollar higher (and the EURUSD pair lower). Indications are that NFP will be acceptable to the market. The ADP payroll report, which anticipates NFP most months, came in at an additional 188,000 jobs for June.