Channel High: 1.2842
Channel Low: 1.2809
Channel Width: 33
Profit Target: 1.2908
Ecnomic Indicator: Non-Farm Payrolls
Time of Release: 8.30PM SGP / 12.30 GMT
Volume @ Time of Release: > 18,000
Profit Given: YES
Setup Checklist:
Breakout of Channel before Time of Release: NO
Volume Breakout of Channel before Time of Release: YES
Economic Indicator Votality Measure: 3
Personal Note: The U.S. Non-Farm Payrolls is one of the few mind-baffling economic indicators which very often upset forecasts. Economists had predicted the figures to stand at 175,000 but the data release shocked the markets. There were only 75,000 new jobs created in the month of May, the lowest in 2006. Is this a sign that companies are playing defensive prior to the direction of the FED or are they hurt by the 16 consecutive hikes on the Fed Rate. So will the Feds continue with further rate hikes or will they pause upon signs from economic data? The fact is B. Bernanke did mention that the committee's decision will be based upon the economic data presented prior to the FOMC meeting on 28 June 2006 and the market has been moving within the range of 1.2716 and 1.2988 since. There will not be any high volatility indicators in the coming week and i expect the EUR JUNE 2006 to retreat back to the 1.2800 region.
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