Today we have AU Employment Change numbers due to arrive, please see my trade plan below.
AU Employment Change
Pair to trade: AUD/USD
Numbers we need:
BUY AUD/USD 31K
SELL AUD/USD -19K
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
About our Triggers:
AU Employment Change forecasted to arrive at 6.0K
We are looking for a
of 25K to the upside to BUY AUD/USD and a
of 25K to the downside to SHORT AUD/USD
So the summary is we get 31K or better I will look to enter a LONG position on AUD/ USD and if we get -19K 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
This trade will have a good chance of a 30%
on the initial
so I recommend trading the retracement method as stated bellow.
NOTE: We have 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%
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
See my Views on the EURO
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.
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
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