In today’s live trading session, we went over the possible setups we can take before tomorrow’s Non-Farm Payroll release. We then did a lesson on how to determine directional bias.
This morning the US Dollar continued its dominance as the majors began to slip against the ‘old reliable’. GBPUSD is down almost 1.4% this week and there is a chance for it to drop further. We say this because the US Dollar Index (DXY) indicates a very probable push to 94.00. During the midweek we predicted that DXY would hit 93.30, and that target was accomplished earlier today. Based on this analysis, and the possibility of a bullish NFP, we are hesitant to call Dollar shorts just yet.
During the session, we were able to identify two promising setups. The first one is a short for NZDUSD. We have a bearish bias on this pair as it failed to push above weekly resistance. In addition, the current daily candle has pushed below previous lows. These are the telltale signs of a possible reversal. We see a similar sell setup for NZDJPY which is currently mimicking the price action seen in NZDUSD. These two trade setups will rely on tomorrow’s NFP result, and as traders, we are hoping for a bullish result.
The NFP event can be tricky to trade and often traders are recommended to stay clear of holding trades during the release. This week’s ADP employment numbers were a shocker, so one can only imagine what tomorrow’s NFP numbers will be. We will be hosting our free live session tomorrow at 11:00 AM EST to discuss the results and what they mean. As always, be safe and trade responsibly!
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