How the NFP can change your charts (Nov 7)

The NFP (non farm payroll) that came out on Friday was much better than expected and pushed the dollar pairs higher (or lower depending on which side is the dollar). The mover of the week was the Gbp/Usd with 400 pips with 160 made on Friday and 175 on Thursday despite the unchanged interest rate for the British Pound. The BOE remained cautious about increasing the interest rate, something that looks more possible for the other side of the Atlantic.
Most dollar pairs (Eur/Usd, Gbp/Usd and Usd/Jpy) broke important levels and could as of Monday move in fresh trading ranges. We could wait for retracements on those pairs and open trades with relatively low risk.
Wednesday is a bank holiday for France, USA and Canada so some volatility could be expected after the European close.
I closed my Gbp/Jpy trade and opened a long on Eur/Jpy that I expect to close it on Monday or Tuesday if my profit target is hit.
The trades I suggest are strictly for educational purposes. If you subscribe to my newsletter you will receive an email when I open a trade. My purpose is not to become a tipping service but to show you my way of thinking and my approach to the markets.

 

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