How To Trade Forex – Forex Update: Watching US Pairs on NFP News
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Take a look at the EURUSD. Similar situation. We’ve been in kind of a downward triangle. We drew this out like this yesterday in the live Trade Room. Bottom right along the 1.1120, 1.1135-level. The top, and you could see the falling highs here, so we’ve been in some consolidation, some contraction as we see lower highs and steady lows within that descending style triangle pattern. We zoom it in a little bit here on the daily timeframe. The blue box. We’ve been studying that top to bottom, orange, yellow, pink, and green-shaded areas. Obviously two and now is the third time coming down here into the 1.1120-level.
If we’re going to see it go lower, underneath the current supports and breakout and start moving back down towards the mid-1.1000s, we’re going to look for positive news. Positive news sends this lower, so good news for the NFP sends this through 1.1120 and starts to head back down into the 1.1110s. So, that’s what we’ll be watching for here on the EURUSD. Of course negative news has the opposite effect. If it’s bad news out of the US with NFP, we look for this to turn around and go back up from the support.
So, it’s a pretty clear area that we’re studying today right here into the green zone in between 1.1135 and 1.1120. Good news sends this through 1.1120 and lower. Bad news, we bounce off of here and go back up towards the pink, yellow, or maybe even the orange zone for the EURUSD today.
Take a look at the GBPUSD. I’m not trading this currency pair. Quite volatile. I haven’t traded it. I did say yesterday that difficult to go short during the live Trade Room, but the market is doing unexpected things here and I don’t think that you really want to. Especially if you’re inexperienced with trading, you don’t really want to mess around with this currently. It’s just extremely volatile, so we’re just going to skip right over this one right now.
USDCAD. We have been trading this one for several days. I went ahead and closed. As I mentioned in the live Trade Room yesterday, I went ahead and closed the remaining portion of the trade with about 180 pips of profit, so it’s been a phenomenal trade. But take a look at the top of the chart. Let’s go ahead and zoom it in one time. Look at the blue box back here. Look at the right-hand side. The green-shaded area at the very top of the chart. We are at resistance and challenging resistance, but we have news out of both Canada and the US at the very same time, so this could be a little bit tricky to trade this currency pair.
Significantly poor news across the board for the US, we would expect this to turn lower and go down off of this green zone and go lower. Significantly positive, we look for it to go higher. That’s the US data. Now, we have the Canadian data to contend with as well. Canadian, good news for Canada sends this pair lower. Bad news for Canada sends this currency pair higher. So, we have to balance that out. If it’s bad news for Canada and good news for the US, we look for this currency pair to significantly rise. If it’s good news for Canada and bad news for the US, we look for this currency pair to significantly fall.
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