Forex Market Update Ahead of Nonfarm Payrolls

Tamar Mehr analyses some of the major Forex pairs including EURUSD, GBPUSD and AUDUSD ahead of the Non Farm Payroll figures coming out this Friday. The Non Farm Payroll figure shows the change in the number of employed people in the United States during the month excluding the farming industry. The figures are released on the first Friday of each month. They provide a great indication of the health of the economy and act as a leading indicator to consumer spending. These figures can provide some big moves across many markets so we need to be aware of this and manage our risk accordingly.  

EURUSD and GBPUSD are currently both quite overextended from their moving averages on the daily charts. If the news creates a selloff in the US Dollar that would mean EURUSD and GBPUSD would rally which may provide us with the daily chart pullbacks we need to then look for an entry short on both pairs. On the other hand if we see a further rally in the US Dollar as a result of the news, we would look towards a market like AUDUSD to join the trend short as currently the daily chart is not overextended and it would have then broken down through a level of support which may act as resistance if retested.

View Tamar’s full analysis in the video below:

NB: For the highest quality viewing click on the wheel in the bottom right hand corner of the video and select 720p.  This will dramatically increase the video image from the default setting.