Entering text into the input field will update the search result below

A Breakout Today Could Give Us an Opportunity to Short EURUSD

Jan. 07, 2011 7:40 AM ETFXE
Simit Patel profile picture
Simit Patel's Blog
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.
Well, today is the first Friday of the month, and you know what that means.....non-farm payrolls time!

Some links to learn about trading this event:

Non Farm Payrolls (NFP's) & Trading the News
nfp : Threads Tagged with nfp
news trading : Threads Tagged with news trading

Ahead of this event, EURUSD is sitting right at support on the daily chart. See below. 

Technically, we are seeing oscillator divergence, in that RSI and MACD are noticeably off their respective lows since the last time the bottom support level of this range was touched. This may tame the case for a breakout. Still, though, if we close below support here, I think that may signal the green light for more room down in EURUSD. 

The US dollar is strengthening across the board for the most part at the moment, although oil and oil exporting currencies are experiencing a bit of strength. Gold and silver are down noticeably, with silver below the key $29 level and gold below the key $1360 level at the time of this writing.

Disclosure: I am short FXE.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.