Coming off the back of NFP Friday we can expect to see some rebalancing in the market perhaps before we get another surge. NFP missed expectations by 18k although average earnings and unemployment rate improved. We expect to see another push higher on USD crosses before a roll over in the medium term.
GBP Futures (6b, September)
We have pulled back into an interesting area now where the TPO charts provide a lot of support for cable. If we hold above the NFP low the bias remains long until a new high is formed in the short term. Alternatively the break down of Friday low would point towards a continuation to the downside back in last weeks low 1.2620. The cumulative delta is showing divergence into the London open, telling us that buy side delta is improving as price grinds lower with very little momentum.
AM TPO
Daily TPO
GBP Heatmap
15Min Candlestick chart
EURO Future (6e, Sep)
Daily TPO
AM TPO - no real trading levels to take positions from, market would need to dip on the open
15min candlestick chart - there is merit in the long on EURUSD also however the risk reward wont set as well as it does on cable this morning.
Feel free to contact us for any questions. Trade Safe.
Comments