This is a video summary of the Live Forex Trading Room session on October 5, 2007.

Today’s Summary, by Sunil Mangwani:

The first Friday of the month always has big fundamentals, along with NFP (non-farm payrolls) data, setting the tone for the month. On that day, generally price moves in a range until the release of the economic data, and then you do get a lot of movement. A lot of folks wait to trade this data - should you or shouldn’t you? That is the question.

Normally we do not advise trading such news unless you have a very good broker that can fill you in with minimal spread, which can be very difficult to find.

Is it worth trading the NFP? Can we find some method that makes trading this important news release palatable? At the release of the data, we do not go into a trade to catch those big 150-200 point spikes - we wait for the dust to settle. Being technical traders, we rely on technical patterns. Call it coincidence, or technical trading at its best - either way you look at it, this could be one way you could look at trading the NFP data.

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EUR/USD Technical View

The pair got rejected by the 1.4300 number when markets opened last Sunday and following that we witnessed a decent drop until it hit the 1.4060 support line on Thursday, on Friday there was a quick move south after the NFP numbers got out but the US dollar lacked strength and it closed the day down against most of the other currencies. Next couple of days will help us get a more clearer understanding of the direction the pair is headed, either we’ll continue this weeks south move and aim for the 1.3930 support and main bearish target or the pair will recover and start moving towards the current YTD high at 1.4300 and perhaps higher. If the US dollar doesn’t start getting some support the EurUsd might continue its march north and 1.45 will become a point of reference for bullish traders.

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