THE CURRENCY TRADER’S BLOG
Online Trading UK
Looking at EURUSD on Daily chart of online trading in UK, I’ve noticed that the Daily candle on Thursday punched through the 200sma level. On the Asian session we noticed a pullback to the underside of this 200sma at 1.3146. With it being Non Farm Friday (1st Friday of new month) the figures forecasted are for a positive outcome. If this was the case then we’d expect the EUR to continue to fall. This would back up what we are potentially seeing unfold on the EURUSD chart. If this does play out in this order we could expect EURUSD to fall towards the monthly fib level (blue horizontal line) which stands at 1.3028.
Have a look at the chart posted below for more info……
Online Trading in UK
Today, September 6, US non-farm payrolls will be released. This particular figure measures the monthly change in the number of recently employed individuals in the United States. As the NFP name suggests, this total does not include people employed in the farming sector, nor private household employees, non-profit organization employees, or government employees.
If the released NFP number is higher than the number forecasted by economists, the US dollar is likely to increase in value. After all, the creation of jobs is an extremely important indicator when it comes to the overall health of an economy.
Will Non Farm Payrolls Rise?
Many economists predict that the NFP will increase and may come in at approximately 180,000 for the month of August. In July, the NFP actually came in below analyst expectations at 162,000. However, the NFP for June came in at 188, 000. Therefore, you can see that the NFP can be difficult to predict and there is always a chance that this number will surprise investors.
THIS IS A REASON THAT WE DO NOT RECOMMEND TRADERS PARTICIPATE IN THE MARKETS AROUND THIS NEWS!!
With that said, most economic indicators were fairly positive this August in the United States. For instance, unemployment benefits claims – measured weekly – became lower throughout the month and hiring appeared to be positive. Thus, there is a good chance that these encouraging signs may indicate that NFP employment figures may be up for the month of August as well.
What Will Happen if the NFP Increases?
If the released NFP number is higher than expected, the USD should be higher in value when compared with other currencies such as the JPY, EUR, the GBP and emerging market currencies. Additionally, if the number is strong, there is a good chance that the US government will begin tapering – perhaps by approximately $15 billion in September. As it stands right now, the government currently spends about $85 billion per month on this program.
CLICK ON PICTURE FOR FULL VIEW
These three trades were placed after the FX Ultimate8 Strategy brought me to look at them following the built in alert system within the strategy. Seeing that price had broken through previous support and resistance levels and the MACD was showing strong momentum in the direction the pairs were moving, as well as targets being suitable distances away, I placed the trades. Whether you are novice or advanced, the FX Ultimate Strategies are a necessity in any traders toolbox!