Looking at the Friday session, the only thing that is worth paying attention to is the jobs numbers coming out of America. After all, that will be the only thing that moves the markets in our opinion, and with that it’s likely that the markets may be quiet during the European session.
Looking at the EUR/USD pair, we did have a bit of strength on Thursday but we feel that it’s more than likely going to be along the lines of a relief rally, but there is significant resistance of the 1.25 region to have us buying puts, especially after the jobs number if there is some type of knee-jerk reaction. We believe that ultimately this pair goes much lower, so right now buying puts in the EUR/USD pair is one of our favorite trades.
We also believe that the gold market may offer a decent trading opportunity after the announcement. If we can get below the 1200 level, we feel that the market should head to the 1140 level. On the other hand, if we can break above the 1220 level, we feel that the market then heads to the 1250 level. However, we are not comfortable being involved in this market until the announcement is made. With that, we will simply follow the direction of the market at that point.
We feel that the US stock markets will be very volatile during the session, but at the end of the day we believe that the only thing you can do is buy calls. Any pullback at this point time should be an opportunity to start buying them, as there is so much bullish pressure underneath. Quite frankly, it would take an absolutely disastrous number coming out of the Labor Bureau in order for the stock markets in America to turn around. Look at any pullback as a short-term call buying opportunity.
