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Fundamental Picture

The NFP week has come and gone and I hope you guys got more than a few pips from it! With Uncle Sam’s latest jobs numbers knocking expectations out of the park, it looks like taper expectations are back on the table.

This time though, it doesn’t look like the Greenback is hogging all the investors’ lovin’. The euro and the pound got some of the action while the comdolls also posted gains against the dollar. The yen got slaughtered though, thanks to the overall risk appetite in the markets.

Will the broad risk appetite continue until the end of the week… or the end of the year? We don’t really have many opportunities for market-moving events with most of the major central bankers’ interest rate decisions already released.

I guess we also have to watch out for speeches or technical levels that could determine how strong the current theme is going to be. Let’s all be on our toes!

Potential Trades

EUR/USD: Bullish


While we’re waiting for other news that would change the current theme, I’ll assume that last Friday’s direction would hold. I’m looking at EUR/USD possible retracement to the broken channel resistance around the 1.3680 area.

If the euro bears attack this week though, then I’ll also be waiting at the 1.3600 major psychological level, which is a former support, near the 100 and 200 SMAs, and is at the 50% Fib on the 1-hour chart.

GBP/USD: Bullish


I think I like this retracement setup better than EUR/USD’s simply because nearer and more possible. Price could fall 100 pips below its current price and hit a former resistance, which is also near the SMAs and a 38.2% Fib on the 4-hour chart. Think it will still reach the levels this week? Don’t hesitate to let me know!



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