Good morning traders.
Yesterday was pretty much a range bound day with our pair bouncing up from around the S1 level to R1 and back down again to end up closing somewhere in the middle. As we have non farm payrolls (NFP) this afternoon (in Europe) I´m not expecting much by way of any breakout at least not until after the numbers if at all. But…you never know. As traders and not investors it is our job to be constantly alert!
However, whether NFP will have any significant impact is debatable given that risk sentiment is firmly at the forefront of investors minds at the moment.
What we are likely to see is what we always tend to get with the US jobs number: whipsaws either side to take out stops and weaker hands. In which case my preference, as always, is to not take part in any stop run shenanigans when the number hits. Its better to wait until the dust settles before deciding if anything is worth a trade.
In fact a better strategy for today would be to make any trades that arise beforehand and then as its Friday have an early beer or two!
Ok lets see what levels we have.
The Hourly Chart
Yesterday I posted the 4H chart as it neatly showed the triangle formation that was bounding the pair at the top and bottom.
As its obviously the same on the hourly chart I´ll just post the H1 chart today as the pattern is equally clear. What stands out is that our levels were pretty good and that the top boundary of the triangle held firm providing extra resistance to the pair at R1.
For today we can keep the same levels and if anything comes up prior to the headline event I´ll be trading it.
Have a good day and a great weekend and I´ll catch you all Monday.