€/Usd is lower at the ends of Thursday’s session as the dollar remains strong amid optimism that the U.S. tax reform bill will pass by the end of the year. Finishing near the lows of 1.7770, we will now await the release of the NFP later today. The Euro also looks set to stay under pressure from selling in EurGbp and this could mean limitations on the upside against the dollar.
1 hour/4 hour indicators: Turning lower
Daily Indicators: Possible topping formation
Weekly Indicators: Neutral
Preferred Strategy: The short term momentum indicators look a little heavy again on Friday, so selling rallies and staying long dollars (short Euro) is preferred as we head into the NFP. I remain fairly neutral on the pair although the daily charts, which had been leaning higher do now appear to be turning lower and may be hinting of further dollar strength ahead. Look to trade 1.1740/1.1810 today ahead of the jobs numbers, with a bias towards heading to 1.1700 later in the day.
|1.1890||Chart Gap||1.1775||55 DMA/Session low|
|1.1877||4 Dec high||1.1755||(50% of 1.1553/1.1943)|
|1.1847||6 Dec high||1.1707||(61.8% of 1.1553/1.1943)|
|1.1814||Session high||1.1685||Rising trend support|
|1.1800||100 DMA||1.1650||(76.4% of 1.1553/1.1943)|
Economic data highlights will include:
German Trade Balance, US Jobs/NFP/Average Hourly Earnings
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