AUDUSD Technical Analysis 29.12 - 12.01: Ranging Bearish - page 3

[Sergey Golubev]

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Press review

newdigital, 2014.01.10 10:24

Trading the News: U.S. Non-Farm Payrolls (based on dailyfx article)

• U.S. Non-Farm Payrolls to Climb 197K, Unemployment Rate to Hold at 7.0%
• NFP Exceeded Market Expectations the Last Two Consecutive Prints

U.S. Non-Farm Payrolls (NFP) are projected to increase another 197K in December and a better-than-expected print may heighten the bullish outlook for the dollar as it raises the Fed’s scope to further normalize monetary policy over the coming months.

What’s Expected:

• Time of release: 01/10/2014 13:30 GMT, 8:30 EST
• Primary Pair Impact: EURUSD
• Expected: 197K
• Previous: 203K
  
• Forecast: 190K to 210K

Why Is This Event Important:

A pickup in job growth may spur a further shift in the policy outlook as the Fed starts to wind down its asset-purchase program, and the central bank may take a more aggressive approach in moving away from its easing cycle as the economic recovery gathers pace.

How To Trade This Event Risk

Bullish USD Trade: NFP Rises 197K+; Unemployment Holds or Falls from 7.0%

• Need to see red, five-minute candle following the print to consider a short trade on EURUSD
• If market reaction favors a long dollar trade, sell EURUSD with two separate position
• Set stop at the near-by swing high/reasonable distance from entry; look for at least 1:1 risk-to-reward
• Move stop to entry on remaining position once initial target is hit; set reasonable limit

Bearish USD Trade: U.S. Employment Falls Short of Market Forecast

• Need green, five-minute candle to favor a long EURUSD trade
• Implement same setup as the bullish dollar trade, just in the opposite direction

MetaTrader Trading Platform Screenshots

AUDUSD, M5, 2014.01.10

MetaQuotes Software Corp., MetaTrader 5, Demo

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