Friday, June 1, 2007

Trade The News 01-06-07 (Non-Farm Payroll)

"There was an initial spike as people saw the headline figure (Non-Farm Payroll) but the dollar quickly fell back after they realised it hasn't really changed anything".

Soon after the news, my long EUR/USD position was immediately stopped out at 1.3427 for -11 pips due to the stronger than expected job report. I immediately reentered another long position at 1.3423 (don't ask me exactly why ... may be partly due to buying at dip, not giving up etc. ). I noticed that the PCE report was actually showing a tamer rate of inflation. My position was gaining quick on my 2nd entry and I was able to exit for +35 pips just 4 minutes later. Since then, I have been sitting on the side line.

EUR/USD 1-min chart

Trading update: I am very close to my account target of Level 6 after hitting level 5 on Tuesday.

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