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Today we discussed the November jobs report and how one can approach it from a day-trading and swing trading standpoint. There has been a tendency over time for NFPs to offer a “fade-trade” opportunity for day-traders, but can also help put us into positions we might want to hold for longer durations if our price levels are met.
In addition to NFP we discussed a few charts of interest. The US Dollar Index (DXY) is holding steady above support following the sharp November rally. This leaves the long-side in ‘right until proven wrong’ mode. It’s possible there is a topping pattern forming, but until support levels are broken we will run with the broader bullish bias. Pairs of interest from the short-side are EURUSD, AUDUSD, and NZDUSD. USDJPY has been a beast, and at this time there is no reason to step in front of that train. We also looked at the charts-scape of some of the Yen crosses, namely GBPJPY, EURJPY, and AUDJPY.
Gold and silver prices are being held under water by dollar strength, and with gold still firmly planted below the 1190/1200 resistance zone it will likely remain weak. Silver still has some room to run to the downside before key support is met around the 16/15.80 area.
Crude oil is at resistance and looks poised to pull-off, but no strong convictions at this time.
Looking to indices, the DAX has more to go on the downside until it reaches support at the post-Brexit trend-line, while the FTSE is teetering on neckline support of a larger head-and-shoulders pattern. The S&P 500 dipped below its previous all-time highs recorded in August and is at risk of reaching deeper into support levels. The Nasdaq 100 has gotten crushed the past couple of days and could be in the process of cementing a multi-month head-and-shoulders top. Will need more time to tell, but it’s certainly in the works.
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---Written by Paul Robinson, Market Analyst
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