EUR/USD: Post-NFP Volatility – Long Setup After Weak Employment
Updated
Following the release of key U.S. economic data, including the Non-Farm Payroll (NFP) and Unemployment Rate, we see a significant spike in volatility for EUR/USD. The NFP came in lower than expected at 142K vs. 164K forecasted, which typically weakens the USD. However, the market’s initial reaction suggests a potential retracement or continuation of the bearish move, providing a possible long opportunity on the 15-minute chart.
• Non-Farm Payrolls (NFP): The U.S. economy added 142K jobs in the latest report, missing the expected 164K. This is a bearish signal for the USD, as it suggests slower economic growth.
• Unemployment Rate: The unemployment rate rose slightly to 4.2% from the previous 4.3%. This marginal improvement adds mixed signals to the market.
• Average Hourly Earnings: A positive note comes from the average hourly earnings, which increased by 0.4%, suggesting some wage inflation.
Despite the weaker NFP, the initial reaction in EUR/USD indicates a potential continuation of the downward momentum as traders might be focusing on other factors like broader market sentiment or upcoming FOMC speeches.
Trade Setup:
• Entry: Enter a long position at the current market price near the 1.1083 level.
• Stop-Loss: Place the stop-loss slightly above the recent high around 1.1062 to account for any possible retracement.
• Take-Profit: Target the next support level near 1.1140, where price action has previously found selers.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
• Non-Farm Payrolls (NFP): The U.S. economy added 142K jobs in the latest report, missing the expected 164K. This is a bearish signal for the USD, as it suggests slower economic growth.
• Unemployment Rate: The unemployment rate rose slightly to 4.2% from the previous 4.3%. This marginal improvement adds mixed signals to the market.
• Average Hourly Earnings: A positive note comes from the average hourly earnings, which increased by 0.4%, suggesting some wage inflation.
Despite the weaker NFP, the initial reaction in EUR/USD indicates a potential continuation of the downward momentum as traders might be focusing on other factors like broader market sentiment or upcoming FOMC speeches.
Trade Setup:
• Entry: Enter a long position at the current market price near the 1.1083 level.
• Stop-Loss: Place the stop-loss slightly above the recent high around 1.1062 to account for any possible retracement.
• Take-Profit: Target the next support level near 1.1140, where price action has previously found selers.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Trade active
EUR/USD is showing strong bullish momentum after the initial entry. Consider moving your stop-loss to breakeven to protect your position. Stay cautious as upcoming FOMC speeches could add volatility.Trade closed: target reached
The EUR/USD long position has hit the target and has been closed in full. Congratulations to everyone who took the trade! Enjoy the profits and have a great weekend!
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