Dollar Volatility Ahead: Analyst Warns Against Holding Trades Through NFP
The EUR/USD pair has been rising in early trading on Thursday, but market analyst Chris is watching for signs of exhaustion ahead of the Nonfarm Payroll announcement. Chris notes that the 1.1640 level was a major sell-off point and could be a potential shorting opportunity. He emphasizes that this would not be a long-term position and cautions against holding any trades through the NFP release.
The USD/CAD pair has been falling over the last couple of days, with a significant gap down at 1.3780. Chris is watching for a bounce from this level, which could signal a potential V-shaped pattern. He notes that interest rate differentials favor the US dollar, despite recent drops in rates.
The USD/CHF pair has been breaking down, with prices falling below both the 50 EMA and the 200 EMA. Chris has been long on this pair for some time but is now watching for signs of exhaustion around the 0.8050 level. He notes that a bounce from this point could be a potential opportunity to go long.