Last week the FED disappointed markets by showing no rush to taper and with a news heavy week ahead, market sentiment will be geared towards building positions heading into the key Jobs data, with the US economy expected to have added roughly 1 million jobs for July.

Beyond US employment data this week, EURUSD traders will also be watching today’s German Retail Sales data, which could shift the ECB’s guidance, given the recent 2% inflation target misses and thus a persistent approach to monetary easing.

The EUR/USD hit a fresh month high on the last trading day of the month, settling just below the 1.19 level and at the time of writing, finding some near term resistance at the 200MA 1.18640. The pair remains supported by the sloping trend line on the daily chart, as discussed in a previous analysis, and this could help EUR bulls build trades higher, given closes above 1.18723 and then the next target at 1.19468 (38.2% fib) as the chart discusses. So, planning to bank on this short-term US dollar weakness? Well, you may not be the only one as markets could continue to react this week to the FEDs near-term outlook and NFP could well be the catalyst for another leg higher.

What do you think? Let us know in the comments below.