Non-Farm Payrolls came and went slightly worse than expectations, yet the euro and equities are on a tear as investors look ahead to a possible stimulus package. Whatever investors are hoping for, we are going to set that hope aside and focus on what we know. And what we know is this. EUR/USD is moving into the end of a possible wave 4 triangle with trendline resistance at 1.2950. Should we remain below the 1.3000 level, a new 5-wave impulse move lower should begin. There is, however, a ton of momentum in an illiquid market behind this move. But I would not be true to my profession unless I traded what I see, and what I see is resistance into 1.3000. I am short a half unit of EUR/USD at 1.2965 with stops at 1.3010, fully willing to accept 45 points of risk on this trade. Now, if you the client chooses to participate in this trade you must be aware of the risk of a weekend gap above our 1.3010 stop loss. If there is positive news over the weekend, we could fully expect the market to gap above our stop levels. Personally, I am willing to accept the risk, so will be taking the position home over the weekend.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.