Forex Signal (Friday January 6, 2012 – 7:00am EDT) – CA Employment Change

Stavro D'Amore

Former FPA Special Consultant
Hello All,

Today we have Canadian Employment Change and Canadian unemployment rate due to arrive at the same time.
Current unemployment rate in Canada is 7.4% I do not expect these numbers to conflict with the with CA Employment change.

Canadian Employment Change
Forecast 18K
Previous -18.6K
Pair to trade: USD/CAD

Numbers we need:

Economical Impact: High
Typical Result: Good for Currency, this forecast is predicated to be bad for the currency
Occurrence: About 8 days after the month ends
Spike Probability: Excellent, we can see a 35 pip on initial spike

About our Triggers:
CA Employment Change is forecasted to arrive at 18.6K
And CA Unemployment rate is forecasted to arrive at 7.4% from 7.4%
However today we will be trading the Employment change release, I will look to enter a LONG position on USD/CAD and if we get -10K or lower I will go SHORT on USD/CAD if we get 45K.
Should this report be triggered, we can expect to see 35 pips on spike.
This report is known to have double spikes so if you miss the retracement on the first spike or it does not retrace, please be patient and wait for retracement on the second spike, I would then need a 50% retracement to enter.

What is it? And why does the market care?
The Employment Change measures the change in the number of employed people in Canada in the given month. A rise trend indicates strength in the labor market and has a positive affect on consumer spending and therefore on the economic growth.

A higher than expected reading should be taken as positive/bullish for the CAD
A lower than expected reading should be taken as negative/bearish for the CAD

Method I use to trade this:
Stavro D’Amore Trading Method

Felix Trading
Trading Descriptions

I will look for a pre news trade on this report, I would look at current volumes and ensure volume is not flat (this is important) and enter about 15 min prior to the news for a LONG position in USD/CAD. I would have a tight SL of 15 pip plus spread, My most likely entry point will be when I see momentum and MACD indicators both cross over on a 1min chart and a 5min chart, once that is confirmed I will enter my LONG position with a Take profit Target of 15-20 Pips.

I do recommend spike trading as an option for this report

I will look for a 30-50% retracement in the original spike before entering any trade.
I will close half my position as soon as I hit the original high point of the first initial spike or a resistance level and place a SL at the entry price of the first initial spike. My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame.

Historical Chart and Data for CA Employment Change

All the best

Stavro D’Amore
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Alaa Dein

Stavro, that is a great thread , but will you please add the support and resistance points for any alert you add in the future , that will be complete :)
thanks again