EUR/USD
The EUR/USD pair has fallen a bit during the trading session on Thursday in preparation for the nonfarm payroll number today, but you can see we bounce to form a hammer. I suspect that we are going to hover around the 1.20 level between now and 8:30 AM Eastern standard Time, when the jobs number is released. If the jobs number is stronger than anticipated, I suspect that will continue to put bearish pressure in this market. Structurally speaking, I anticipate a bounce towards the 1.21 level, an area that I think will have a significant amount of resistance attached to it. If we were to break above the 1.2150 level, the market could go much higher. Otherwise, I anticipate seeing exhaustion that we can start selling, giving us an opportunity to take advantage of what has been a significant break lower. After the jobs report, I anticipate a significant move. If we drop, I would anticipate 1.18 being targeted.
GBP/USD
The British pound fell during the session on Thursday, as we continue to bounce around just below the 200 SMA. We are also anticipating a significant amount of resistance at 1.3650 level, and an uptrend line just above there. I suspect that if we get a good jobs number out of America, that could put lower prices into the thoughts of traders. At that point, I anticipate that the 1.3350 level would be targeted, possibly the 1.30 level. Alternately, if we break above the uptrend line, that could send this market to the 1.40 level, but we would more than likely need some type of major miss when it comes to the jobs number in the US. I suspect we will see sellers sooner rather than later, but obviously we need to wait until the jobs number comes out.
