The EUR/USD pair fell during the majority of the session on Wednesday, but found enough support to bounce and form a hammer. The hammer suggests that there is a bit of buying pressure below, but at the end of the day, it appears that the market will be a bit stuck at the moment, with the non-farm payroll numbers coming out during the Friday session. Because of this, I am flat of this pair at the moment, and I plan on staying that way until we get this announcement. This is mainly because there is so much focus on the employment situation in the US at the moment. After all, the Federal Reserve and its quantitative easing program will be greatly influenced by this number.
The Europeans printed some stronger than anticipated numbers, and it appears that the EU might be doing a little better than originally thought. This is a long way from being overly bullish, but at the end of the day it is something to hang onto.
Two days of nothing?
I have to wonder based upon the hammer and shooting star if this pair is ready to go anywhere at the moment. The down trending channel from the monthly time frame is just above, and as a result I think that the market is a bit too tight at the moment to be bothered with. I believe that a lot of the next move will come into the market based upon the announcement on Friday, and because of this the markets will do almost nothing in my opinion.
Friday will be very volatile – possibly – and as a result I would be vary weary of getting involved in this market between now and then. In fact, most of the markets around the world will more than likely be somewhat quiet in my estimation. The 1.39 level above would signify a massive break out, and that has me suddenly long-term bullish of this pair. On the other hand, below the 1.33 level is a massively bearish sign. Either way, I think we will get a signal soon. Just not today…
