NFP this Friday. Expect shallow follow through on market moves this week.
On NFP week very often price makes its way back to the “home base” levels
aroung the Combo Lines, which gives me some interest in pairs like EUR/USD,
USD/JPY, CAD/JPY, AUD/USD, etc. Watch for failure to progress trends as
evidence for the oncoming moves through the Inside and Outside ranges.
I took a substantial loss on EUR/GBP last week. The the U.K. prime minister’s
announcement, the GBP had a massive reaction. I will be watching to see if
this currency tumbles into failure or if it will again work through the patterns.
Be very cautious trading GBP today.