![\"eurusd](\"http:\/\/www.laidtrades.com\/wp-content\/uploads\/2010\/10\/100710eurusd.png\")
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Hello FX friends! Last September 24, I specifically noted the Euro\u2019s potential to gain in valuation (kindly see that post here<\/a>). At that time, the EURUSD pair or the fiber had just broken out from a cup and handle formation. So if you took my cue and went long there and then, you would have been up by almost 600 pips already! While you might have missed the first the EUR\u2019s initial move, technically speaking, there\u2019s still a chance to ride this train. For one, Elliot Wave Theory states that the third wave is usually the longest wave of a 5-wave cycle. In some instances, though, the third only equals the length of the first wave. But even if this is the case, notice that the present wave 3 still falls short of wave 1, suggesting that there could be more space for the pair to move higher. Secondly, the pair\u2019s upside target (gauged by projecting the height of the pattern from the point of breakout) has not yet been met.<\/p>\n Earlier today, the European Central Bank (ECB) left its interest rate unchanged at 1.00% for the 17th straight month. During the global financial crisis and the recent credit troubles in the Euro zone, the ECB was forced to lends banks with cheap cash and to support this until the whole bloc recovers. While the economy has been rebounding, it remains to be fragile and pulling the central bank\u2019s lifeline would endanger the economy once again. Despite the ECB\u2019s decision to hold rates, the euro continues to trade strongly against the greenback because of the overall bias against the USD.<\/p>\n Tomorrow, the US\u2019s NFP report will be published. Expect an increase in volatility around the time of the data\u2019s release. In any case, firms in the US are seen to have added 3,000 jobs after they laid about 54,000 during the previous month. An increase in employment, as we know, would be beneficial for the economy and, thus, would spark some risk taking. A jump in optimism then would lead investors to more US dollar selling which in turn props up the valuation of the euro.<\/p>\n