Forex Signal (Wednesday May 9, 2012 – 9:30pm EDT) – AU Employment Change

Stavro D'Amore

Former FPA Special Consultant
Hello All,

Today we have AU Employment Change numbers due to arrive, please see my trade plan below.

Don’t forget to join my Live on line Seminar on FOREX SECRETS start 9 May 2012.

AU Employment Change
Forecast -4.2K
Previous 44.0K
Pair to trade: AUD/USD

Numbers we need:
BUY AUD/USD 20.8K Deviation +25
SELL AUD/USD -29.2K Deviation -25K

Economical Impact: High
Typical Result: Good for Currency
Occurrence: monthly 10 days after month ends
Spike Probability: Good, we can see 40 pips on initial spike

About our Triggers:
AU Employment Change forecasted to arrive at -4.2K
We are looking for a deviation of 25K to the upside to BUY AUD/USD and a deviation of -25K to the downside to SHORT AUD/USD
So the summary is we get 20.8K or better I will look to enter a LONG position on AUD/ USD and if we get -29.2K or lower I will go SHORT on AUD/USD.
Should this report be triggered, we can expect to see about 40 pips on the initial spike.
This trade will have a good chance of a 30% retrace on the initial spike so I recommend trading the retracement method as stated bellow.

NOTE: We a conflict of AU Unemployment numbers that is due to arrive the same time, This is forecasted at 5.3% and current unemployment is 5.2%. I will not be surprised if we see 5.4% number

What is it? And why does the market care?
The Unemployment Rate is a measure of the percentage of the total labor force that is unemployed but actively seeking employment and willing to work in Australia.
A high percentage indicates weakness in the labor market. A low percentage is a positive indicator for the labor market in Australia and should be taken as positive for the AUD..

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

Pre news
We might see a little sell off in the AUD before the release. Be looking for a short around 25 mins prior to the release, please be out of the short 5min before release, look for MA (moving averages) to determine a short position

I do recommend spike trading as an option. Liquidity is very good at the moment if you are using an ECN broker. Please use no more than a 15 pip limit order to control slippage.

After Spike
I will look for a 30% retracement in the original spike before entering. I will be looking at a 15 minute chart.

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 to analyze this.

All the best

Stavro D’Amore
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