It’s the time of the month again with Non-Farm Payroll in about 2 hours or so.
Let’s show you what I’d usually do before the big numbers and probably derive something from there and then with both fundamental and technical analysis. I’d start my day by visiting Forex Factory’s economic chart and check the forecast and the previous number.
The Numbers
Nonfarm Employment Change: 100K appose to -4K last month. Good numbers eh! We’re suppose to see the dollar kicking a big fuss to the up side if the numbers tally then? Wait, let’s expand the directory icon to read what the rest has to say.
The Articles
So you’ve got like at least 6 articles. Digest them. One of the nice thing I appreciate from ForexFactory is their effort to group everything together in a category so it’s much easier for me to do my reading. Also, NFP is one of the most highly watched indicator, you’ll expect good number of articles written on it.
Done with the Reading
Aha! You’ve spent a good 1 hour or so to digest and have the rough direction how the market COULD go. (No, if you know how it will, you won’t need to read this anymore do ya?) So now you’re just waiting for the magic number announcement.
If NFP performs as expected with 100K or more, the dollar goes bullish, and if its a sub 100K results come up, uh uh! Dollar goes south.
Now to the Charts
Blow it up by clicking them, I always do have my fibos and trendlines drawn to see which side is the pair more prone to head.
GBPUSD
EURUSD
USDJPY
Points to Take Note When Trading Big News
I’m not too sure how ECN broker works because I’ve never worked with one, but chances of both type of brokers will have problems filling your positions when big news come, but never ever try to open positions before the news. If you could, wait for awhile before opening a position, maybe in the 5 – 10 minutes range, where you still could catch some pips of the news result.
Else if you are experience enough, you can always set your buy stop or sell stop levels with your stop loss before the news. Good luck tonight.
