For Friday

The usd/jpy and the usd/chf I believe are well positioned for a short in terms of a risk versus reward basis. For me the eur/usd and gbp/usd are in too tight of a range to be traded safely. With that said I will not trade until nonfarm payroll data is released. I feel the jpy and chf are oversold yet their long term trend is currently down. I expect those currencies to fall back and therefore I will be watching for shorting opportunities. Generally, the markets are trading within a tight range. Tomorrow will give us a glimpse of future direction. I will post another thread tonight. The eur/cad and eur/aud look like they will give us many opportunities in the short term. If the BOE cuts rates next week...the GBP/CHF should be a good short. Something to think about: if the US continues to show weakness, currencies that carry less risk (chf,jpy and eur) will strengthen. Until the nzd and aud break out of their wedge formations, I am not comfortable trading either pair.