Tomorrow, April 1, there will be a good opportunity to trade on pullbacks, when statistics on changes in Nonfarm Payrolls will be updated again at 15:30 Moscow time.
According to forecasts, the number of people employed in the US non-agricultural sector will decrease.
If the forecast is justified, the US dollar is likely to be under some pressure.
Let's take the NZDUSD currency pair as a trading instrument, although you can choose any other currency pair with the US dollar.
Why NZDUSD?
There is no significant disparity between the New Zealand and United States economies judging by the macrostatistics of the countries’ main indicators. This is likely to have a favorable effect on the growth of NZDUSD volatility during the data release, and this is good for the pullback trading.
What will be the strategy?
1. On Friday, Nonfarm Payrolls will decrease compared to the previous period:
* Set a BuyLimit order in the chart of the NZDUSD currency pair at the 0.1 - 0.15% distance from the price at the statistics updating.
* Set Take profit near the price at the very moment of data release or by 0.05-0.1% higher.
Or close at the 8-hour trading Close after the deal’s opening.
If the open-position order does not work out within 8 hours, delete it.
2. On Friday, Nonfarm Payrolls will increase compared to the previous period:
* Set a SellLimit order in the chart of the NZDUSD currency pair at the 0.1 - 0.15% distance from the price at the statistics updating.
* Set Take profit near the price at the very moment of data release or by 0.05-0.1% lower.
Or close at the 8-hour trading Close after the deal’s opening.
If the open-position order does not work out within 8 hours, delete it.
Remember that volatility often increases on news publications!
It is also necessary to take into account the spread and follow the rules of capital management!
Warning!
Trading on financial markets involves a high level of risk and may lead to a loss of investment capital.
The MarketCheese Team is not responsible for the possible loss of Your investment funds.
This content is for informational purposes only and is not intended to be investing advice.
