Today we have AU Employment Change numbers due to arrive, please be mindful of the bellow trade plan and be diligent with your trading.
AU Employment Change
Forecast 11K
Previous -29.3K
Pair to trade: AUD/USD
Numbers we need:
BUY AUD/USD 35K
SELL AUD/USD -15K
Economical Impact: High
Typical Result: Good for Currency
Occurrence: monthly 10 days after month ends
Spike Probability: Good, we can see 40 pips on initial
spike About our Triggers:
AU Employment Change forecasted to arrive at 11K
We are looking for a
deviation of 25K to the upside to BUY AUD/USD and a deviation of 25K to the downside to SHORT AUD/USDSo the summary is we get 35K or better I will look to enter a LONG position on AUD/ USD/ and if we get -15K or lower I will go SHORT on AUD/USD.
Should this report be triggered, we can expect to see about 40 pips on the initial
spike . This trade will have a good chance of a 30%
retrace on the initial spike so I recommend trading the retracement method as stated bellow.NOTE: We a conflict of AU Unemployment numbers that is due to arrive the same time, This is forecasted at 5.3% and is expected to come at 5.3%.
What is it? And why does the market care?
The Unemployment Rate is a measure of the percentage of the total labor force that is unemployed but actively seeking employment and willing to work in Australia.
A high percentage indicates weakness in the labor market. A low percentage is a positive indicator for the labor market in Australia and should be taken as positive for the AUD..
Method I use to trade this:
Stavro D’Amore Trading Method
There is no Pre news; however in saying this we might see a little sell off in the AUD before the release.
I do recommend spike trading as an option. Liquidity is very good at the moment if you are using an ECN broker. Please use no more than a 15 pip limit order to control slippage.
I will look for a 30% retracement in the original spike before entering. I will be looking at a 5 minute chart. I will sell half my position as soon as I hit the original high point of the first initial spike and place a SL at the original spike price.
My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame to analyze this.