U.S. PAYROLL DATA

The market is waiting for the payroll data from the u.s. at 8:30 am est. but that's not all. there are a total of 11. yes 11 data reports coming out of the U.S. today.

That's a lot of opportunity to shake traders out of their cash. I don't see the market doing anything until then. We will see what the setup looks like 30 min before the release.

However, the daily charts on both the euro/usd and the gbp/usd shows that selling has ended and the momentum has switched from down to up on both of these pairs. But everything that has gone on for this week has just been positioning for this payroll report. As far as reports go, this is one that sets the tone for direction for the next couple of weeks so it is one of the monster reports.

The euro/usd formed a bull pivot at the close of yesterday's trading but did so on lower volume which makes it more suspect than usual because of the data coming out.

What should concern the trader is the amount of other data to go with it which will allow for stop hunts with news as the excuse throughout the day. The best advise I can give you now is to keep your bullets in the chamber until the report or just before the report when you can see how the market has positioned itself for the data.

But the inside operators always know in advance so based on the subtle change in the volume profiles my bias at the moment is against the dollar and I anticipate dollar negative news.

But all in all the picture is giving conflicting signals so I consider it a weak bias at this time because the weakness of the down volume could just be a byproduct of many traders waiting this week out for this big news data.

I won't know until 30 to 15 minutes before the data if I will take a position or sit this one out.

Jerry
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