NFP Rally

On Friday we had the NFP report an hour before the market opened and price went up on a very bullish move, before retracing just after the NYSE open and reversing at a demand level right into the supply zone I mentioned on Thursday.

Looking at the larger 60 min chart, the rally from 1596 to 1644, appears to be a two stage retrace, and I am expecting price to return back below 1600 this week and could actually go below the demand level at 1590 - 1595.

The rally that began on Thursday, was not a selling climax on the 1 hour chart (although when it occurred, the 5 min chart showed it as relatively climactic based on intraday volume) and that is the reason I believe that the down move will continue.

Here are the charts from Friday. Nb, I increased the size of the tick charts to reflect the expected increase in volume and volatility for NFP day.  I have also attached a 3 Renko chart to show how good it is at identifying good S&D zones.