On Thursday the pair did break below support at 1.4820 but was rejected by 1.4800.  This resulted in a push above the 1.4860-1.4870 level which triggered the test of the recent highs at 1.4900.  It failed to push above 1.4920 which is the next breakout level.

The pair currently sits at 1.4867.  Minor resistance has developed at 1.4880.  A break of that may be good for a scalp, but until the pair moves back above 1.4900 the movements are more likely to whipsaw.  A push above 1.4900 indicates a test  of 1.4920.  If that level that can be penetrated, 1.4950 and 1.4980 are the targets/resistance beyond.

A drop below 1.4839 indicates a move to 1.4820-1.4810.  If the pair continues to sell, support comes in at 1.4770 and beyond that 1.4740-1.4730.

Keep in mind the Non-Farm Numbers come out of the US today at 13:30.  This is one of the biggest market moving events, thus the markets get very erratic around the announcement.

If you want a strategy for trading the NFP report you can read my article on it here:

http://www.investopedia.com/articles/forex/09/non-farm-payroll-report.asp

Cory Mitchell, CMT
Chief Market Strategist
-Please read the Legal Disclaimer page.

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We have GBP PPI Input out at 8:30 GMT and also US Non-Farm Payrolls at 12:30 GMT.  So be cautious in pairs involving these currencies – especially ones involving the USD.   I don’t recommend having “bet” positions placed before the numbers come out – especially the Non-Farm Payroll (NFP) report.  But I do recommend being involved in trading after the number has been released.  But wait at least 5 minutes or more, 15 is even better.  You will likely still catch most of the move which may develop.

If you want a specific strategy for trading the NFP report you can find one near the bottom of this list which is a list of my published articles with Investopedia/Forbes Digital: http://www.investopedia.com/contributors/default.aspx?id=335

There is no reason to gamble on which way the numbers will come out and how the market will react.  Most small traders could be wiped out by this news event if it comes out with unexpected numbers.  The 50/50 toss of up of being right is not worth it.  Plus, nothing moves in a straight line and finding liquidity can be a problem, so even what appears to be a profitable trade one second may not be the next.  If you are an individual trader it is best to wait for the market to churn after the announcement and then jump in when it is has chosen direction.

Just be aware of those figures when trading today/tomorrow (depending on where you are).

Cheers,

~Cory Mitchell, CMT

Chief Market Strategist

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Since we are going to have an active news day I will not be posting the day trading signal.  GBP Services PMI comes out at 8:30 GMT, followed by employment data (non-farm payroll) at 12:30 GMT out of the US.

I have recently published an article on trading the Non-Farm Payroll Report.  That article can be accessed here:

http://www.investopedia.com/contributors/default.aspx?id=335

Use caution when trading news events, and never trade without a reasonable stop in place.  Do not try to  predict the movement, instead allow for the volatility to subside and wait for an opportunity to enter once an actual direction in the market has been established.  This article outlines one way to do it.

~Cory Mitchell
Market Strategist
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Are you interested in getting into trading? Or if you are already trading and dissatisfied with your broker, check out mine at Forexyard. Switch to Forexyard, open a Standard account and receive up to a $1,000 bonus.

Open a SuperMini or Standard account now and receive a 100% cashback worth up to $300.
Open a Standard account and trade commodities, receive 10% cashback worth up to $1,000.