During the session on Friday, we have the Nonfarm Payroll numbers coming out. This of course is the biggest announcement in the world, so as we get a glimpse as to what the employment picture might be like in the United States, it will move most markets.
We believe that the EUR/USD pair is currently contained within a range from 1.12 on the bottom, and 1.15 on the top. Because of this, we feel that the market will probably be very volatile during the session today, but quite frankly we look at pullbacks as call buying opportunities as the market has been so bullish lately.
The S&P 500 found its footing near the 2060 level, forming a nice-looking hammer for the day on Thursday. Because of this, we feel that it’s only a matter of time before this market breaks out again, and therefore we are call buyers only. We think that pullbacks represent value that should be taken advantage of. They are very likely to appear shortly after the jobs number comes out. If you are patient, you should be able to take advantage of the value on a significant pullback.
S&P 500 daily chart
We still believe that the GBP/USD pair should continue to go higher, and as a result we are buying calls on pullbacks as well. Because of this, we will be patient but we recognize that any move lower should be thought of as value, and should more than likely have the buyers stepping in.