“There is no safety in numbers, or in anything else.” ~ James Thurber
Good morning. The NFP day is here – consensus being a figure around 150k while the unemployment rate is expected to print 8.7% (see FX Calendar). The dollar just keeps climbing higher amid euro’s sell-off, as fresh multi-month lows are reached almost on a daily basis.
USD Index
Dollar is out of the consolidation range as it just exited to the upside yesterday. The breakout suggests more upside but don’t rule out a correction towards the middle of yesterday’s candle – momentum would remain intact.
USD Index Daily 1-6-2012
EURUSD
As mentioned yesterday – selling into rallies and/or more weakness is the best bet these days. But one should see a big warning sign when short EUR becomes the most obvious trade, when most banks/advisory services are telling clients to sell EUR: be it official news, unexpected or rumor mill events – it happened before and will happen again – wiping all short-term shorts in a downtrend every now and then is part of the game. I’m not saying it’s a good idea to buy it, but rather be more careful than usual while holding short, as a correction could be just around the corner.
Euro Vs US Dollar Chart 4hrs 1-6-2012
AUDJPY
Recovery loses steam but current sell-off seems corrective. Perhaps today’s NFP/unemployment data will help the AUD pushing upwards.
Australian Dollar Vs Japanese Yen Chart Daily 1-6-2012
USDCHF
Now that the USDCHF is out of the range highlighted in my previous post, things are looking even better for the bulls after such a strong move. If a correction is due, support should be formed around .9450
US Dollar Vs Swiss Franc Chart 4hrs 1-6-2012
Silver
Silver continues to consolidate in a tight range below resistance at 30. Buying on the potential break of the said resistance remains a plan to consider.
Silver Chart Daily 1-6-2012
Ongoing consolidation looks like a bull flag on the 4hrs chart:
Silver Chart 4hrs 1-6-2012
Have a great day and happy trading!
- Continue reading: NFP Day is Here
