US Non-Farm Payroll (NFP) Retracement Trade 08/03/12 (+50 pips)

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DEFINITION
The US Non-Farm Employment Change measures the change in number of employed people during the previous month, excluding the farming industry. A rising trend has a positive effect on the nation´s currency. Job creation is an important indicator of economic health because consumer spending, which is highly correlated with labor conditions, makes up a large portion of GDP. This report is the first of the month that relates to labor conditions, making it susceptible to big surprises.

UPDATE
The US NFP Employment change actual release came out at 163K, better number than the expected 101K forecast; and the unemployment rate was slightly higher at 8.3% from 8.2%. After waiting for a decent retracement, Henry entered a buy on the EUR/JPY pair at 96.30 based on the better NFP numbers, on the movement of the market, and after choosing the best currency pair to trade according to the Strength Meter. In a few minutes, we closed 50% position for 30 pips of profit at 96.60 and moved the SL to break-even. Henry closed the remaining 50% position at around 96.90, but it shortly reached our take profit level at 97.00; yielding a total of up to 50 pips of profit.

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About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

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