I trust you are all very well and looking forward to the weekend now lets end the week on a high as some very important data will be released at 13:30PM GMT
If you haven't guessed it already Yes! Its the NFP which is showcased every 1st Friday of the month so heres a breakdown of of the 4 TOP Things to pay strict attention too!
- A sudden spike which can wipe stop losses out in an instance that may appear on many currency pairs once the NFP is announced usually subsides right after and corrects itself towards the initial price.(Yellow Rectangle) is the point where NFP Data was released (Predominantly Negative data) and the supply zone was triggered and the sell off began! Remember from my previous post I touched upon using the Actual Data Release VS the Consensus this is the only figures you should focus on.
- NFP volatility not only affects USD pairs but may affect commodities and even metals closely tied to the Dollar’s price.
- Safe havens such as Gold (XAU) may also be affected, especially in a negative scenario in which investors sell-off USD pairs and turn to safe havens to mitigate risk. Here's a current example of GOLD we ca n see a steep downtrend on a 4 hour timeframe and can expect a continuation towards the downside where demand was made prior in the profit releasing zone.
- Actually, when analyzing the NFP, investors also look at two other indicators, namely the Unemployment Rate and the Average Hourly Earnings. If either or both of those indicators are strong, a negative NFP might not impact the USD as significantly.
Now this brings my to my final point and that is to take extra precaution when trading today as anything can happen in regards trade direction! The main thing in any scenario is to follow your gut intuition. That might mean staying in a trade, getting out a trade or simply not trading at all either way stay safe, stay sharp!