fbpx

A1 Trading

How To Trade Dollar Before NFP

July 5, 2022
Frank Cabibi

The US dollar had a great start to the week in the first couple trading sessions. With NFP and unemployment numbers coming out this Friday, volatility and speculation around the USD will increase as investors look to price in the unexpected.

What To Look For

The first set of heavy news starts tomorrow with the Fed's meeting and the JOLTS job openings. This indicator will let us know how many job openings there were in the month of June. A higher number of openings means that companies are looking to hire. Expectations are higher than the forecast.

JOLTS will also give us some insight on what to look for on Friday with Non-Farm Payroll. If there are more job openings than expected it could be an indication that more workers were added to the labor force (higher NFP).

dollar
https://www.forexfactory.com/calendar#graph=122943
dollar
https://www.forexfactory.com/calendar#graph=122943

However, job openings have not really reflected the number of people hired over time. The visuals above show a fall in the number of jobs added but a rise in job openings. Although expectations are getting beat, the NFP has still fallen the past 4 months suggesting a slow in economic growth.

What This Means for the Dollar

An expectation of a hurting economy from high CPI, lower consumer spending, less jobs added, etc. is why the dollar is higher today. Investors are likely trying to price all of this in before the news on Friday. Therefore, it could be beneficial to start looking for long setups on the USD.

Dollar Setups

USD/CAD

dollar

The USD finds strength above riskier assets and takes this pair up to the top of a trend line and a triple top. Investors eye Friday's NFP report while expectations are much lower than last month's actual. Price could break higher as the third test on highs suggests hard bullish momentum especially from today's heavy green candle. If price can close above this channel, the next major level of resistance lies around 1.32000.

AUD/USD

dollar

Aussie-dollar is in a steady downtrend which started about a month ago thanks to depleting risk appetites. Price has recently moved higher on the day which means it could be setting up for a test at resistance around 0.68308. The lower lows suggest that the trend will likely continue to the downside.

USD/CHF

dollar

USDCHF looks to be nearing resistance on the 4H after crossing to a lower low. The pair is trending in a falling channel with huge price swings in the meantime. However, it does look like price could complete the move above 1.00000 before hitting the top of the channel and reverting back to the downside. Support lies in the 61.8% fib level.

The EdgeFinder

All-in-one Fundamental Dashboard

30 Days Access

Free Telegram

Join for daily analysis and trade setups!

Join Telegram

DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
Signals

A1 Trading Company

A1 Trading is a leading financial analysis and trading education company dedicated to empowering traders of all levels. Our team combines extensive market knowledge with cutting-edge technology to provide valuable insights and tools for traders worldwide.
2024 All Rights Reserved | A1 Trading Company
There is a significant degree of risk involved in trading securities. With respect to foreign exchange trading, there is considerable risk exposure, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.
homesmartphonelaptop-phonecross-circle
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram