News data are the price driving catalyst in the Forex market. If you are new and don’t really understand why the market moves wildly at certain times, probably you don’t have precise knowledge of fundamental analysis. In fact, many traders in Australia are trading the market with technical knowledge. They are don’t really understand the global economy thus they lose money most of the time. But a group of traders who knows the impact of major news, always try to make a profit by trading the news. Though we have several important news in the Forex market, in this article we are going to give you a guideline to trade the NFP data.
What is NFP?
NFP stands for Non-Farm Employment Change. This data reflects the performance of the U.S economy for the last month. Usually, we have forecast data and if the actual data beats the expectation, the U.S dollar index gains huge strength in the global market. U.S dollar index measures the overall value of the green buck’s strength against the six major pairs. So positive Non-Farm Employment Change usually push the U.S dollar higher against most of its major rivals.
Trading the Non-Farm Employment Change
To trade the NFP news, you need to learn about the trading session. This data is released in the New York trading session and the professional traders wait for the actual data. But the smart traders always draw the key support and resistance level in the trading platform. Most of the time, we experience wild spike towards the nearest support and resistance level. So, these are the levels that you need to use to execute our orders.
So, should we place the trade before the news?
Placing trade before the news is more like gambling. You don’t know what will … Read More