Good Morning Traders,
Yesterday, we picked up some pips on the EurUsd. We also posted a potential longer term position trade setting up on the UsdJpy. We’d appreciate some feedback on the Yen entry to see if anyone took the setup. It’s important for us to get a sense of how many people are participating as the trade was up nearly 80 pips at one time. With a stop move to b/e, the trade looks like a nice winner. And, if you’ll keep an eye on the Royal Flush, it’ll give you a sense of when to add to the position when you deem prudent.
Today, we have the ADP Non-Farm Employment Report. This is an independent but pre-cursor to the government’s NFP report. The ADP will probably set the tone for the NFP. The remainder of this week could get choppy. Once the NFP is out on Friday, then we’ll look to trade the overall sentiment gleened from the report. If the numbers are good, we’ll look for the USD to appreciate; if bad, depreciate; and if neutral, even that will been seen as a positive as job losses continue to slow.
Meanwhile, patience is a trading virtue and taking the time to “pick our spots” is essential. There’s never any shame in taking a session and just watch / wait /see how markets are setting up. We watch the EurUsd as a guage of how other pair may perform. Currently, the Euro has establish an equilibrium level @ 1.4350. Price will probably swing around this number until after the ADP report. So, we’ll wait for the report, let the “dust” settle, then make a decision to engage in the market or not.
Lastly, the EurUsd is forming a big Bear Flag on the 4 hour chart. We need a sustained close below 1.4300 for a trend resumption south to 1.4000. If for any reason price can reclaim 1.4500 and hold, then this current downtrend in the pair could become interrupted. Again, we’re just waiting for these announcements to show us the overal market sentiment and then, go from there.
Great Trading to you.
