Consiolidation
EURUSD Trading HALTED in lieu of Non Farm Payrolls?Since price topped off at 1.09 the bears have been relentless in their pursuit of driving the price back down to previous lows. In the first week of April the EURUSD retraced over 40% with almost no resistance and just in the last 72 hours price has taken another 15% dive. Currently, price is consolidating between 1.07 and 1.065 or in Fibb terms .50 and .618.
As we approach tomorrow mornings (Friday @ 8:30am EST) news release of Non Farm Payrolls , it seems that the major players have either reduced position sizes and/or exited their positions completely. These actions/precautions appear to be creating the dreaded barb wire consolidation that we see being produced since March 31st.
What should you do?
This type of movement is not terrible for scalpers as price has created VERY significant support and resistance at both 1.065 and 1.07. Due to the nature of this pattern I would suggest sitting it out until after the news releases and inevitable breakout that will occur, but if you HAD to enter for the sake of having an open position I would place orders to sell in the 1.068 area and orders to BUY in the 1.065 area, with profit target being set at the opposing price side of the range.
You like breakouts - great, I do too and I'm anticipating a big one! We may see the classic NFP release where price moves hard in one direction then totally reverses direction leaving a BIG UGLY wick candle and half your account behind. So, in order to avoid that last part I said, wait for price to move and CLOSE past either 1.07 to BUY or 1.064 to SELL.
Good Luck!
