Pick of the Day: EUR/USD – Close Trade

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Close Trade: 01/07/07 – 11:14 pm EST

Well, the market was expecting 100K (actually most were expecting much less after the ADP report came out at -40K), but the Non-Farm Payrolls report came out at a whopping 167K new jobs created in December! Crazy! This number blew everyone away and the dollar dropped almost 100 pips on EURUSD.

Our trade was stopped out, which is a shame as we almost hit pt1 during the Euro trading session as everyone expected way worse numbers. I apologize for the lack of updates during the US trading session. We had technical difficulties and I was unable to post adjustments/updates to our trade during that time.

Total: -40 pips

Trade idea: 01/05/07 – 12:50 am EST

It’s all about Non-Farm Payrolls and the rest of the job data tomorrow. Where ever you go on the internet you can expect to read on how terrible it’s going to be…and I think I’m going with it! ADP (which has show strong correlation lately) released a terrible number of -40K jobs in the private sector, Monster Employment index reports a lower number, and the Challenger job cuts shows a lot less layoffs in in December than November. The Employment Component of Service Sector ISM grew, but ISM numbers have been in a downtrend for quite some time now. So, here is what i’m going to do:

Long EURUSD with a reduced position size at market (currently at 1.3075), stop at 1.3035, pt1 at 1.3115, pt2 at 1.3150.

Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.

Stay tuned for more updates, and if the number comes out way better than expected (surprises happen in the forex market?? ;p) , I may post a stop and reversal type trade! Good luck and good trading!