EUR/USD
The Euro rallied during the session on Thursday, finally clearing the resistance barrier that had been causing this market to consolidate for some time. Because of this, looks like we are ready to go higher but with the Nonfarm Payroll Numbers coming out today, it’s very likely that the markets will have quite a bit of volatility. In fact, we could get a sudden turnaround if the US jobs number is better than anticipated. However, at this point in time I would suspect that a pullback will more than likely find buyers at the 1.1050 level.
If we break the top of the candlestick for the day though, I think we then try to reach towards the 1.15 level. At this point, I believe that the market will probably try to reach towards the upside as the Euro seems to have all of the momentum.
GBP/USD
The GBP/USD pair broke out to the upside during the day on Thursday, but gave back quite a bit of the gains to form a shooting star. Because of this, the market looks as if it is ready to pull back, and with today being the jobs report that makes a lot of sense. With that being the case, I think that it’s probably only a matter of time before we get some type of sell off. However, there is quite a bit of support below, so I think that it will be difficult to truly break down. I think this is a short-term move no matter what happens, and as a result I think that it’s difficult to hang onto the trade for any real length of time. If we break down below the 1.45 level, I would anticipate that the 1.44 level will be targeted. If we break the top of the shooting star we should then try to reach towards the 1.48 handle.
