NFP Friday and what it means.......
Tomorrow is the much anticipated NFP that seems to hold every traders attention every month. No doubt it is the most significant event in the US for sure. However regardless of the print it will not effect the overall trend now in place which is the rise of the US Dollar.
I mean seriously as a trader would you even think of owning EURO's at this time? With the severe structural imbalances in the Economies that make up the EURO and the financial instability that exists everywhere in the Eurozone these days, kind of makes you want to back up the truck and hold EURO's doesn't it? What we do have to look at it is the EUR/USD pulse higher and its inability to fall very much after getting there. No question the EURO is over valued at 1.3600 or higher. In truth it is over valued at parity but that is another story and it only applies when sound fundamentals are ruling the global economy (which it is not) in these times.
When price action stays high in the face of everything that says it should be lower you have to look at it and simply accept it. As I told you a 500 pip move is not that much in the markets. It is when you are holding trillions in debt but not so much for the market makers.
I expect the NFP to print slightly less than expected or slightly more. Either way it should allow the market makers to hunt a bit more. In other words the EURO should pulse higher and then lower.
It will be volatile and I would be careful trading it.
We may have another sell signal when it is over but I am holding off for the time being.
I am simply waiting it out for the US Dollar to make a surge. That will happen some time over the next little while and when it does the EUR/USD will drop like a rock.
See you tomorrow.
I mean seriously as a trader would you even think of owning EURO's at this time? With the severe structural imbalances in the Economies that make up the EURO and the financial instability that exists everywhere in the Eurozone these days, kind of makes you want to back up the truck and hold EURO's doesn't it? What we do have to look at it is the EUR/USD pulse higher and its inability to fall very much after getting there. No question the EURO is over valued at 1.3600 or higher. In truth it is over valued at parity but that is another story and it only applies when sound fundamentals are ruling the global economy (which it is not) in these times.
When price action stays high in the face of everything that says it should be lower you have to look at it and simply accept it. As I told you a 500 pip move is not that much in the markets. It is when you are holding trillions in debt but not so much for the market makers.
I expect the NFP to print slightly less than expected or slightly more. Either way it should allow the market makers to hunt a bit more. In other words the EURO should pulse higher and then lower.
It will be volatile and I would be careful trading it.
We may have another sell signal when it is over but I am holding off for the time being.
I am simply waiting it out for the US Dollar to make a surge. That will happen some time over the next little while and when it does the EUR/USD will drop like a rock.
See you tomorrow.
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