<p style="text-align: center;"><strong>THE DAILY FX POST
</strong><strong>from
</strong><strong>THE PREMIUM SERVICE</strong></p>
<strong>DATE: Friday 5th September 2014
REF: #82
</strong>

<strong>1. OVERVIEW – INITIAL THOUGHTS:</strong>

Wow…some moves yesterday after Draghi. That was a day I did not expect and I missed out on a lot of the EUR/USD move lower, because when I banked 100 pips profit I thought that there may have been 20/30 more not another hundred! I did add and my $$$ balance banked was very good but had I not placed my stop so tight…yes…its another woulda, coulda shoulda tale!

The end result was that without doubt the volatility that had been missed from the market was now back, with vengeance.

Today, we have Non-Farm Payrolls and quite honestly I am sure that the FX markets could take another pounding two days in a row. Whilst my attentions yesterday were drawn to the USD majors the EUR cross-rates in particular got crushed. So I am in the camp that we will be consolidating to work off the over-sold conditions. But, what do I know, it’s down to the banks, we could be off to the races once again.

The thing that I have noticed is that bounces have not been very strong and therefore this leads me to believe we may have some way to go lower first but it really is so difficult to say. It is only my opinion after all.

Yesterday afternoon in the late U.S. session the NZD/USD, AUD/USD and USD/CAD all had moves back in USD strength direction, even the AUD which had been moving higher on the back of the AUD/NZD cross-rate effect.

Common sense tells me we have to consolidate the move but it is NFP day…. anything can happen. The USD index completed a massive double bottom move yesterday, which took the EUR/USD as low as 1.2918. I tweeted yesterday that 1.2915 was the next support albeit horizontal support only, but it held. It was a big number sometime ago and has lots of support and resistance running through it.

I see the following levels as key support and resistance levels today with the USD majors. The question on most people tongues is can the USD index rise in spectacular fashion two days back to back.

<strong>PAIR:                                      SUPPORT                             RESISTANCE</strong>

<strong>EUR/USD:                              1.2915                                    1.3000

GBP/USD:                             1.6285                                    1.6400</strong>

<strong>NZD/USD:                             0.8270                                    0.8350</strong>

<strong>AUD/USD:                             0.9300                                    0.9420</strong>

<strong>USD/CAD:                             1.0810                                     1.0910</strong>

<strong>USD/JPY:                              104.75                                     105.50</strong>

<strong>USD/CHF:                             0.9175                                     0.9350</strong>

Overnight, despite reading of potential fireworks and alerting everyone to this it was just a consolidation of yesterdays move with a bit of EUROZONE mud-slinging thrown in for good measure.

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<strong>2. KEY NEWS EVENTS TODAY (BASED UPON (NYC) EDT TIME ZONE):</strong>

USD – Non-Farm Employment Change and Unemployment Rate.
CAD – Employment Change, Unemployment Rate &amp; Ivey PMi.
<strong>3. EXISTING LIVE TRADES:</strong>

Both of the FUNDAMENTAL TRADES below are hedged at 100 pip loss positions:

FUN14
GBP/NZD
Long
Entry at: 1.9800
Stop at: 1.9000
Limit at: 2.2350
Present Price: 1.9672
Current Profit / Loss Position: -128 pips
(My hedge trade is back in play)

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<strong>4. LIMIT &amp; STOP ORDERS WITH BROKERS:</strong>

RT143
AUD/NZD
Long at 1.1150
Stop at 1.1020
Limit at 1.1550

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<strong>5. FINAL THOUGHTS:</strong>

Take your time today.

I think that next week will offer up some directional trades, and, lets be honest that is a better trading environment to trade in.

If you do trade try to keep it in line with trends, if its counter trend be very, very careful.

The Weekly FX Drive Thru blog will be published sometime tomorrow, as I tweeted late yesterday, this weekend I think that it may be prudent to look at some longer term charts to get a perspective on trade set-ups for the next few weeks given what is a real market sentiment potential move.

Good Luck today.

<strong> </strong><strong> </strong>

<strong>6. DISCLAIMER:</strong>

Trading Forex carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if necessary.

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Scott Pickering
The Pip Accumulator
<a href="http://www.weeklyfxdrivethru.com">www.weeklyfxdrivethru.com</a>
Twitter: @ThePremService
Email: premiumserice@weeklyfxdrivethru.com

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