We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Gold: -0.38% Silver: -2.32% Oil - US Crude: -4.91% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/rCjARZJyDr
  • 🇺🇸 USD Pending Home Sales (YoY) (FEB), Actual: 11.5% Expected: 6.0% Previous: 6.7% https://www.dailyfx.com/economic-calendar#2020-03-30
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.82%, while traders in EUR/GBP are at opposite extremes with 72.26%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tvJ75jahL3
  • NY Fed Purchases $6 B in Treasury Coupons
  • Commodities Update: As of 13:00, these are your best and worst performers based on the London trading schedule: Gold: -0.33% Silver: -2.85% Oil - US Crude: -4.78% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GwAV15kNjx
  • $USDCAD up over 1.50% off of weekly lows as S&P forecasts 2% GDP contraction in Canada in 2020 https://t.co/WPnG7d56ev
  • Heads Up:🇺🇸 USD Pending Home Sales (YoY) (FEB) due at 14:00 GMT (15min), Actual: N/A Expected: 6.0% Previous: 6.7% https://www.dailyfx.com/economic-calendar#2020-03-30
  • $GBPUSD traded as high as 1.2466 in early turnover before giving back over 100 pips as sellers took early control of the pair. Get your GBP/USD market update from @nickcawley1 here: https://t.co/oQwEGX3foF https://t.co/SjiFiR0sZT
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: 0.85% Germany 30: 0.65% Wall Street: 0.48% France 40: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/ZkdGo3GLje
  • Mnuchin: - Economy was in a good place before #coronavirus - US stocks still attractive for long-term investors
US Dollar : How to Trade the US Jobs Report on Friday

US Dollar : How to Trade the US Jobs Report on Friday

2011-08-04 16:24:00
Jeremy Wagner, Lead Trading Instructor,
Share:

Friday morning at 8:30a ET (12:30 GMT) the US Non-Farm Payroll figure is released. Approach the news release with a trading plan. One such approach is the News Reversal Strategy.

A key to the News Reversal Strategy is patience. That is waiting for traders to digest the news release, and then looking for technical triggers to enter the trade. With the market volatility increasing leading into this event, it is likely volatility will continue to be high and large spikes may result a few minutes after the release.

This strategy works best on a more liquid pair so a good starting place is a major currency like the EURUSD or GBPUSD. Trade it off of a 5 minute chart.

Here are the strategy rules:

-Just minutes before the release, note the current market price as Pre-Release Price…this will become our entry trigger later on.

-After the NFP is released, wait 15 minutes, or for 3 candles to close.

-Place an entry order to go long at the Pre-Release Price (PRP) if the market is currently trading towards the bottom of the 3 candle range. Place the stop at the bottom of the 3 candle range. Place the take profit order at twice the distance of your stop loss.

-If the market is currently trading towards the top of the 3 candle range, then place an entry order to sell at the Pre-Release Price (PRP). Place the stop at the top of the 3 candle range. Place the take profit order at twice the distance of your stop loss.

-If the entry order doesn’t trigger by the end of the day, then delete all orders.

How_to_Trade_the_US_Jobs_Report_on_Friday_body_Picture_2.png, US Dollar : How to Trade the US Jobs Report on Friday

(Created using FXCM’s Marketscope 2.0 charts)

The chart above is the 5 minute EURUSD chart during July 2011 NFP release. After the three 5 minute candles close, the trader then determines to place a sell entry order as the prices are near the top of the range. The entry order is set near 1.4250. The stop loss is set at 1.4330. Take profit level is 1.4090. A trader may want to move their stop to break even if the prices moves half way to the take profit level.

Additional educational resources

The Non-Farm Payroll news release is arguably the largest market moving event for the US Dollar for the month. Additionally, with the recent debt crisis, there is likely going to be increased volatility. Day traders who may be interested in another strategy to trade AFTER the release are invited to Join Walker England at 9:15a ET for his live webinar on the LonNY Day Trading Strategy.

The webinar is being conducted inside DailyFX Plus Live Classroom where you can interact and ask your questions live.

Login HERE with the temporary password noted below:

Username: dfxedu

Password: dfxedu

(Good thru Sunday Aug 7)

Jeremy Wagner contributes to the Instructor Trading Tips articles.

http://www.dailyfx.com/how_to_trade_forex/course_trading_tips

To receive more timely notifications on his reports, email jwagner@dailyfx.com to be added to his distribution list.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.