Sive Morten
Special Consultant to the FPA
- Messages
- 18,743
Greetings everybody,
So, today is NFP day and we should not expect activity until numbers will be released. Since we mostly depend on numbers - it makes sense to manage existed positions. So, if you have profitable longs - think about stop management, or even taking 50% profit, i.e. make some preparations to NFP release. Here is why...
On daily chart, indeed, EUR has shown upside breakout it stands above MPP. But as we've warned yesterday, it doesn't mean that drop to 1.1450 couldn't happen. While market is below 1.1850 tops - it could turn down any time and form butterfly "Buy" that we've discussed last week. Especially under impact of NFP:
Another reason to worry is 4H "222" Sell. It has clear sign of weakness - CD leg is much slower than AB. Here is bullish grabber is forming, so it increase chances on completion AB=CD target, but who knows what will happen next:
On shorter 1H chart, market has completed minor (blue) OP target, butterfly extensions and larger (Red) COP target. Next target area is 1.1760-1.1780 - there we have XOP (blue), OP (red) WPR1 and major butterfly target. But - it is very difficult to foresee wether price will reach it, because we do not have any clear bullish signs or patterns that could guarantee upside continuation. That's why we talk about some protection and preparation to NFP release:
So, today is NFP day and we should not expect activity until numbers will be released. Since we mostly depend on numbers - it makes sense to manage existed positions. So, if you have profitable longs - think about stop management, or even taking 50% profit, i.e. make some preparations to NFP release. Here is why...
On daily chart, indeed, EUR has shown upside breakout it stands above MPP. But as we've warned yesterday, it doesn't mean that drop to 1.1450 couldn't happen. While market is below 1.1850 tops - it could turn down any time and form butterfly "Buy" that we've discussed last week. Especially under impact of NFP:
Another reason to worry is 4H "222" Sell. It has clear sign of weakness - CD leg is much slower than AB. Here is bullish grabber is forming, so it increase chances on completion AB=CD target, but who knows what will happen next:
On shorter 1H chart, market has completed minor (blue) OP target, butterfly extensions and larger (Red) COP target. Next target area is 1.1760-1.1780 - there we have XOP (blue), OP (red) WPR1 and major butterfly target. But - it is very difficult to foresee wether price will reach it, because we do not have any clear bullish signs or patterns that could guarantee upside continuation. That's why we talk about some protection and preparation to NFP release:
