Friday was Non-Farm Payroll day. This release was a bit mixed overall. The number came out -47K worse than expected, however the unemployment rate came out .3% better than expected. Usually +/-50K usually creates a sustained move, but this month there was conflict between the headline number and the unemployment rate.
By Thursday the forex market had already established an aggressive trend to the downside in the EUR/USD. Going into the Thursday morning’s NY session because of the already established trend it was a fairly straight forward trade but it required some patience.
After making a large run to the upside during the London session on Tuesday the market hit a level and simply ran out of steam. It’s been said you never want to be the first one in on a trend nor the last one out. Keeping that principal in mind we were very patient on this one.
On Monday we had a nice reversal candle formation in the direction of the already established trend. Sunday the forex market opened up slightly lower and came up to test previous support that turned into resistance. After setting this high the EUR/USD worked down through the London session on Monday.