Trading on rollbacks in USA labor market data

Tomorrow at 3:30 p.m. Moscow time, there will be updates on Initial Jobless Claims and Continuing Jobless Claims in the USA.

These indicators have shown good results in the pullbacks trade.

The number of initial claims is predicted to increase, which means that some weakening of the US dollar against other currencies is expected.

As for repeat claims, their decline is predicted, with some strengthening of the US dollar afterwards.

A multidirectional forecast for claims for unemployment benefits plays into the hands in the pullback trade, as there's an increase in volatility before currency pairs determine the direction of a price movement.

As a trading instrument, any currency pair can be taken with the US dollar.

Today we opt for the GBPUSD volatile pair.

The economies of both countries are almost equally attractive to investors, which is also useful in trading on pullbacks, due to the lack of a clear advantage of any of the countries:

GBPUSD trading strategy:

1. Forecasts will work out:

Place two pending orders BuyLimit and SellLimit at a price 0.1% lower and higher than the current price, respectively, 1 minute or preferably 20 seconds before the indicators update on the 15-minute GBPUSD graph.

Place Take Profit orders at the opening price of a 15-minute candle at the moment of indicators update.

Protect funds with Stop Loss orders at the level Low/High of the previous day, which is June 8.

If the opening orders aren’t executed within 8 hours, cancel them.

If the opening orders are executed but the target orders aren’t executed within 8 hours, leave the market at the current price.

2. Forecasts will not work out and initial claims will decrease, while repeat claims will rise:

Act similar to option 1.

3. Both initial and repeat claims will rise:

Act similar to option 1 but place the BuyLimit order.

4. Both initial and repeat claims will decrease:

Act similar to option 1 but place the SellLimit order.

Warning!

Trading on financial markets implies high levels of risk and can lead to a loss of investment capital. MarketCheese team isn’t responsible for the possible loss of Your investment funds.