Fri, 09 Mar 2012 00:00:00 +0100

US Non-Farm Payrolls Set to Generate Heavy Market Volatility

Investor optimism that Greece would successfully execute an important debt-swap, boosted riskier assets throughout yesterday's trading session. As a result, the EUR/USD shot up over 100 pips during the European session, reaching as high as 1.3272. Today, the US Non-Farm Payrolls figure is forecasted to generate significant market volatility. Assuming the indicator comes in as expected, risk taking may increase, which could help the euro extend yesterday's gains.

EUR/USD

The Williams Percent Range on the daily chart has drifted into oversold territory, indicating that upward movement could occur in the near future. The Slow Stochastic on the same chart appears to be close to forming a bullish cross. Traders will want to keep an eye on this indicator. If the cross forms, it could be a sign of an impending upward correction.

GBP/USD

Most long-term technical indicators place this pair in neutral territory, meaning that no definitive trend is apparent at the moment. Traders may want to take a wait and see approach, as a clearer picture may present itself later on.

USD/JPY

Following the bearish trend the pair has seen in recent days, technical indicators are now showing this pair in neutral territory. The Williams Percent Range on the daily chart is at -50, while the Relative Strength Index is right around the 60 level. Taking a wait and see approach may be the wise choice.

USD/CHF

The daily chart's Williams Percent Range is currently in overbought territory, indicating that a downward correction may occur in the near future. A bearish cross on the 8-hour chart's Slow Stochastic supports this theory. Going short may be a wise choice for this pair.

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