EUR/USD
The EUR/USD pair broke higher during the day on Thursday, clearing the top of the hammer that formed on Wednesday. This of course is a very bullish sign, and something that I had said could happen yesterday. We ended up reaching all the way towards the 1.10 level, which is what my target was. Now that we have to deal with Nonfarm Payroll Numbers today, it’s very likely that there will be nothing but volatility in this pair. Quite frankly, I feel it is probably best to sit on the sidelines of this pair at the moment, and wait to see what the daily candle suggests. I think that the 1.1050 level will be a bit of a ceiling, while the 1.08 level is a bit of a floor. With that being the case, it’s more than likely a shorting opportunity after we get an initial higher move.
GBP/USD
Initially, the British pound lost value during the day on Thursday but found enough support just above the 1.40 level to turn things around and shoot higher. At the time of writing, we are getting close to the 1.42 level, but I think it’s only a matter of time before we find resistance above. I am especially interested in shorting this pair closer to the 1.43 level as it was previously so supportive. Also, there are many things working against the British pound right now, not the least of which is that the US dollar could very well gain due to a stronger than anticipated jobs number.
Just like the EUR/USD pair though, I’m going to wait till the end of the day to place that trade. I’m looking for exhaustion just above, as it is not only an obvious resistance area in the chart, but it also would come after an extremely sharp bounce which is something that should be sold off anyway.
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