Pressure Mounts Ahead of NFP

Article originally published on innerfx.com and republished here with permission

Quote of the day:“If government could create jobs and raise children, socialism would have worked.” ~ George Gilder

Good morning. We all know what today is. Right – the NFP day! Euro remains under pressure after losing ground against most counterparts in the last few days, and trading today is likely to stay quiet until the  US session starts. The NFP figure is expected to come in between 50k and 100k. There aren’t other major events today on the economic calendar except for unemployment figures. Let’s see what are the interesting charts to watch

EURUSD

Both daily and 4-hrs charts have been rather choppy recently so I rather look at the hourly. Although it’s unlikely to rally “that” far, 1.4300/50 is a decent resistance zone now, after it’s been breached yesterday. Minor support is formed below current trading levels, near 1.4200 – and there aren’t any notable levels until between current levels and 1.4000/50. Selling on a short-lived rally or more weakness/a break of support are probably the best things to do

Euro vs US Dollar Chart Hourly 9-2-2011Euro vs US Dollar Chart Hourly 9-2-2011

EURCHF

Euro looks quite ugly against the Swiss franc these days, but there’s still a good chance for this downward movement to be corrective in nature. Corrective or not – buying it is not something I’d do right now and I rather wait for a confirmation.

Euro vs Swiss Franc Chart 4hrs 9-2-2011Euro vs Swiss Franc Chart 4hrs 9-2-2011

EURCAD

Like other EUR crosses, EURCAD continues to decline and support around 1.400 has been breached. As noted in my report two days ago, the fib support zone around 1.38 is the first target of current decline. In case of a pullback, pending sell orders are probably clustered between 1.4000 and 1.4050 where former support resides

Euro vs Canadian Dollar Chart 4hrs 9-2-2011Euro vs Canadian Dollar Chart 4hrs 9-2-2011

Silver

This is one of the breakout setups I like the most: basically silver is screaming “buy me” and it’s a few points away from recent top zone. Perhaps the NFP release is what should fuel the breakout

Silver Chart 4hrs 9-2-2011Silver Chart 4hrs 9-2-2011

CHFJPY

Resistance is being tested right now and I’m looking for a selling opportunity but I won’t jump in trying to catch the (potential) very top here. I’ll wait for a sign of weakness to confirm the resistance zone

Swiss Franc Vs Japanese Yen Chart 4hrs 9-2-2011Swiss Franc Vs Japanese Yen Chart 4hrs 9-2-2011

EURGBP

The short setup noted in my report yesterday is looking good, as the pair is extending its slide below .8800. I think there’s more downside for the EURGBP and it’s best to old short or look for new selling opportunities

Euro vs British Pound Chart 4hrs 9-2-2011Euro vs British Pound Chart 4hrs 9-2-2011

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About abwehra group

The Art&Science of Trading Gold
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