By: Doug Rosen
Yesterday the EUR/USD did not have any real extraordinary price action. I knew that would be the case after the big move the day before that and topping it off the same week of the Non-Farm Payroll report and also the fact we are in the month of December which does go without saying that it is a vacationing month. As I have said in my analysis with the other pairs I don't expect any major moves before the NFP and of course when the NFP Report is released there is no way to really know where price will go.
I personally don't like to trade the NFP since it is so unpredictable to me and I prefer the predictable trades and there are plenty of those. What I do like to do is sometimes trade a couple hours after the report since more than likely the report will cause an extreme move in either direction I prefer to wait for price to reach a take profit zone such as an R2/S2 reversal pivot point then I will just try to fade the move.
Anyway, on the daily time frame price is just below the 21 ema but the stochastics is pointing up.
On the 4 hour time frame price is outside and above the price channel it was previously in and broke out of but is currently range bound and not doing much as I expect.
On the hourly time frame as well as the 15 minute price is in a very tight range and the ema's are all bunched together and price seems to be treading on the weekly R1 pivot at 1.3462 and just below the daily central pivot which nearly overlaps the R1 at 1.3465 Avoid entering positions prior to the release of the report and when the report is released give the market time to settle and digest it then look to fade moves at extreme pivot zones or 200 ema's.
