NFP + ISM Manufacturing Technical Strategy
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Hi guys,
Today we had two interesting reports from the US - the Non-farm payroll and ISM Manufacturing. We all know that NFP cause a lot of volatility and whipsaws (see chart). Today EUR/USD dropped to 1.3407 then shot up to 1.3459 - huge whipsaw.
I decided not to trade the NFP, wait for consolidation, then trade the ISM Manufacturing report that most of the time results in a clean breaout. ISM Manufacturing came at 55.0 vs 54.0 as a market forecast. The breakout strategy worked. I find that trading consolidation patterns after one news release and before the other has a very high probability of success, provided you have at least slight deviation from the market expectations.
Cheers,
Steve