We’ve seen a huge USD sell off, US economy is slowing to a possible recession, and we have Non-Farm Payrolls expected tomorrow to report 125K new jobs were added. So, what’s a trader to do you ask? I say nothing. Everybody and their mama is waiting for this report, and once it’s released we’re going to see very, very dangerous trading conditions. If you are able to put in limit entry orders before the release or try to jump in at the market price after the report, you’ll probably experience slippage and get killed.
Traders have been hesitant this whole week to move money as the USD sell off has stalled, even when more weak US data was released. Tomorrow’s report will be the guidance we all need to make a move, but will we move right away? No. We will wait for the number to release and see the markets reaction before making a move. It’ll be tough tomorrow to watch the massive movements as some of us think we’ll be missing out on pips, but trust me – from the release of the report to about 20 – 30 minutes after, it is not a good time to enter trades. I will watch the market after the NFP report tomorrow and IF an opportunity shows itself I will post a trade idea on my blog. Stay tuned!