The Dollar continues to gain. Big Pippin gains +95 pips. Thank you Greenback!

The ISM Non Manufacturing Index came in strong once again although it decreased slightly to 57.1 from 58.9 in November. However new orders fell almost 3 points to 54.4 and backlog orders fell 6.5 points to 48.0. This decrease may mean a slowdown in upcoming business activity but overall the numbers are still doing ok. Nothing to worry about yet!

My trades from yesterday all worked out to my favor. The Euro short trade got triggered at 3130 and fell straight to 3100 for a nice 30 pip gain.

The Cable also fell to my short trigger at 9450 and ended up spiking down to my target at 9400.

The Swissy was a little bit difficult. My long trade was triggered at 2310 but didn’t quite make it to my target at 2350. I didn’t get stopped out but by the close of the 11:00 am ET candle I knew that market volume had died down and that my target probably wouldn’t get hit. I closed my trade out at 2325 for a small but respectable 15 pip gain.

So my total pip gain for today was +95 pips

Coming Up:

US Non Farm Payrolls
8:30 am ET; 13:30 GMT
Previous= 132k; Consensus= 100k; Forecast Range= 45-125k

Chart Analysis:

EUR/USD

The Euro is now resting right under 3100 after it fell from around 3175. Now 4hr stochastics has been in an extended period of oversold mode, but daily stochastics is still showing room for more selling pressure. If the Euro can break through its 50 SMA and 38% Fib line I think it will go down to 3000. On the other hand, if the pair retraces back up, I think it will move back up to its 200 SMA on the 4hr chart.

Long Trade: Buy at 3120; Stop at 3090; Target= 3150; Target 2= 3170

Short Trade: Short at 3020; Stop at 3040; Target= 3000

GBP/USD

The Cable fell to 9400 and is currently resting right above it around 9415. 4hr stochastics is oversold and the daily stochastics is slowly getting there. At this point, the indicators are still conflicting so I think the pair could go either way. I’ll go long if the Cable can break back above its 38% Fib level which is currently at 9460 and target 9500. If the pair can break below 9400, I think it will hit its 50 SMA on the daily chart.

Long trade: Buy at 9460; Stop Loss= 9420; Target= 9500

Short trade: Short at 9390; Stop Loss= 9405; Target= 9375; Target 2= 9350

USD/CHF

The Swissy has made a nice run up and looks to be headed towards its 200 SMA on the daily chart. 4hr stochastics is overbought and daily stochastics is heading into overbought territory. I can’t find any good trigger points so I’ll stay out of this pair for now.

USD/JPY

Finally the Yen drops! It almost brings a tear to my eye that the pair is finally doing what the indicators have been predicting for so long now. I’m going to make a longer term play on this pair so the stop on this will be a little higher.

Trade Idea:

Short at market (118.50); Stop at 119.70; Target= 117.60

Conclusion:

NFP is the big report for tomorrow. There’s been some weak expectations for the report since the ADP numbers came in weak yesterday but anything can still happen. Be prepared!