The initial reaction to the January jobs miss sent EUR/USD to a 1.3064 high, stopping us out of our half-sized short position for less than 20 points. Then, the ECB dropped a bomb on the market and said something to the effect that rates are likely to remain at current levels for the coming months. This sent EUR/USD spiraling to and through pre-NFP release levels down to our 1.2970 support level. This was the move we were trying to position for. Unfortunately, stop runs are a very common cost of doing business around major economic releases. Interestingly, both extremes of the uptrend channel support were tested in reaction to NFP and the ECB. As of now, we are holding 1.2970 support. The EUR/USD stop was very minor compared to the two, 50+ point EUR/JPY trades we had earlier this week. We'll be back Sunday night to attack this 1.2970 support.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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