Trade NFP by badar527

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      Trading the Non-Farm Payroll Report




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How To trade NFP News
Trading news releases can be significant forex strategy as news
often spurs strong short-term moves in the market providing
excellent trading opportunities for traders. This report shows
you in-depth analysis of GBP/USD currency pair.

Today’s News?
The non-farm payroll (NFP) report is a key economic indicator
for a trend change in Currencies’ direction. The NFP report
causes one of the consistently largest rate movements of any
news announcement in the forex market. As a result, many
analysts, traders, investors and speculators anticipate the NFP
number - and the directional movement it will cause. With so
many different parties watching this report and interpreting it,
even when the number comes in line with estimates it can
cause large rate swings. Read on to find out how to trade this
move without getting knocked out by the irrational volatility it
can create.
Trading NFP:
The NFP report generally affects all major currency pairs, but
one of the favorites among traders is the GBP/USD. NFP is the
most volatile news release for forex traders; it can move the
market anywhere from 100 to 225 pips in a matter of minutes.
A strong payrolls number could send interest rates higher,
making the USD more attractive to foreign investment as well
as being bullish for US stocks. Conversely a weak number could
push interest rates lower and have the opposite effect.
Here the figures for the news:

8:30am (NY Time) US NF Employment Forecast 165K Previous 120K
8:30am (NY Time) US Unemployment Rate Forecast 8.2% Previous 8.2%

Typical market reaction:


Payroll Employment Up > Bond Market Down, Stock Market Up
Unemployment Rate Up > Bond Market Up, Stock Market Down

Payroll Employment Down > Bond Market Up, Stock Market
Down
Unemployment Rate Down > Bond Market Down, Stock Market
Up
Candlestick Analysis:
According to Candlestick Rules following are the price Support
and Resistance levels to watch:




    1.65325     1.63964   1.62793

    1.6165/79

    1.59914     1.58062   1.56059

A break below 1.6165/79 will send the price lower towards
1.59914, 1.58062 respectively. While a rejection of 1.6165/79
will accelerate the price in upward direction towards
1.62793first, and the next target in case of a break of
1.62793would be 1.63964.
Fibonacci patterns




According to Fibonacci rules price made 50% retracement
Of 1.56058 to 1.60574 .And now the expansion level for this
50% retracement will complete at 1.63349/65 area. In order to
complete this Fibonacci pattern price must respect the
downside trend line and would not break it. Whereas a break of
this lower trend line will negate this fibo pattern.
Trendlines And Chart Patterns:
Following chart patterns are being made in GBP/USD.




Analysis:
Above chart is speaking for itself . The price is still hanging with
the upper channels. So there are a lot of chances for the price
to make some downside correction .while a support from the
lower trend lines will send the price higher again .For now ,
there are more probabilities of the price to come down and
complete the channel formation. In other words, price may
slide towards 1.6080 first, and 1.59914 would be the next
target.
Disclaimer

Trading foreign exchange is a high level risk investment, and may not be suitable for everyone. Before deciding to trade foreign exchange you
should carefully consider your investment objectives, level of experience, and risk appetite. Remember, the purpose of this site is to help in
your trading decision. We offer in depth analysis and signals to help you in your decision making. Our market recommendations are based
solely on the judgment of our personnel. These recommendations are based upon information believed to be reliable, but we cannot and do
not guarantee the accuracy or completeness thereof or represent that following such recommendations will reduce or eliminate the risk
inherent in Forex. So this site is not responsible for any loss of your investment in anyway.

								
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