U.S. Dollar retreats after Non-Farm Payrolls Fall by 95,000

U.S. September Non-Farm Payrolls fell by 95,000with the private sector coming out at 64,000, in line with expectations.

U.S. September Non-Farm Payrolls fell by 95,000 with theprivate sector coming out at 64,000, in line with expectations. Overall one hasto conclude the report was close to what traders were looking for. This couldmean more of the same trading pattern which we have been witnessing the pastcouple of weeks.

The Dollar retreated shortly after the release of the jobsdata. The Euro is hemming and hawing. Technically this market made a reversaltop on Thursday which is generally thought of as a bearish pattern. The patternwas confirmed overnight, but we saw this last week and the market reversed backup.

With the trend so decisively higher, traders have toapproach the short-side with caution. The reversal top may be indicative of atop but it is suggested that aggressive traders use precision to enter themarket rather than sell weakness.

Now that the U.S.government has released its September jobs data, traders will shift their focusto the size of the Federal Reserve’s quantitative easing package and how theyare going to do it. There are arguments floating around which call for the Fedto use the “shock and awe” approach. This means hitting the market with a hugeamount of liquidity. Others feel the best approach is to announce a big numberbut spread it out over time.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More