Webinar: NFP Price Action Preview
Talking Points:
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- In this webinar, we used price action to analyze macro markets ahead of tomorrow’s Non-Farm Payrolls report out of the United States. We had discussed this topic in-depth in this morning’s Market Talk, which you’re certainly welcome to read at the following link: Will NFP Motivate or Obliterate the U.S. Dollar?
- On the long-USD side of the coin, we looked at markets that have been most accommodative to that theme since last Friday’s USD-reversal, and one of the more attractive areas has been against the Japanese Yen. We had looked at a setup a couple of weeks ago that eventually began to work, and should USD-strength persist, this could continue to be an attractive venue to look for that theme as the Bank of Japan is unlikely to be nearing hawkish monetary policy anytime soon.
- We then moved on to look at the potential for USD-weakness. This has been somewhat of a running theme throughout this year, when rate hike expectations have driven the Dollar higher, strong reversals took place as a single negative data print made rate hikes looks much less likely. This happened with NFP on June the 3rd, and again on July 29th with U.S. GDP. This could happen with Non-Farm Payrolls tomorrow as well, so we wanted to look at the weak side of the Dollar in the effort of balancing exposure.
- For weak USD-plays, we looked at GBP/USD, USD/CHF and Gold; all setups that we had written technical pieces on yesterday, and are certainly available from the links below:
GBP/USD Technical Analysis: Carney’s Lament
USD/CHF: One’s Trend is Another’s Range
Gold Prices Sink to Deeper Support, is More Pain to Follow?
--- Written by James Stanley, Analyst for DailyFX.com
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