Many traders believe that the last few months have produced straight forward moves in Forex especially on the EUR/USD and USD/JPY when the numbers were not met. Last Friday we had number that were clear even to most 'untrained traders'.
The official numbers came in at 280K vs 226K Expected; UE Rate 5.5% vs 5.4%
Total non farm payroll employment increased by 280,000 in May, and the unemployment rate was essentially unchanged at 5.5 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in professional and business services, leisure, hospitality, and health care. Mining employment continued to decline.
You will notice on non farm payroll days that we often have aggressive stop runs on both sides, for this reason I often take the day off. Just so happens last Friday was my Birthday, so I did not trade.
It is very common that retail traders will place their trade before NFP, only to get stopped out shortly there after. The trouble with trading the initial number is stop runs are the norm, and you can never be sure which way the big money will wash before the 'real' move. I teach several methods in our trading room that can help add a winning edge when trading news. This include various strategies and key levels outlined each day in our trading room.
EUR/USD Finds support at 61 fib.
The EUR/USD has seen some very wild rides over the last few trading weeks. The support are to watch is the 1.1150 area, and a move below the 1.1100 may spell trouble for the longs.
Friday the EUR/USD provided a nice setup for the bears after the NFP news release. I tend to not look at data as much as I do some key Market Maker levels to try to help see the markets next move. For those reading this who are members of our trading room, I will post a video tonight on tomorrows key Market Making levels I feel may rock the trading boat.
After pouncing on the shorts all the way towards the 1.1700 level, the EUR/USD has clearly been an amazing day trading pair. At the moment we are sitting on the 61% Fib retracement from the 1.1700 highs.
Weekly EUR/USD shows a different story. You will see the weekly chart on the EUR/USD shows a much different story. One that shows us we may be heading lower longer term. Notice the aggressive reversal candle on the weekly chart that stands out.
0 Comments