Non Farm Payroll Results this month:+158 pips in just 1st 20 minutes & +252 pips in total in about 3 hours

(Click the Chart to Enlarge)
USD JPY started from 95.25 and touched 96.83 those were 158 pips in just 1st 20 minutes. Then in the next 15 minutes it dropped down to 96.41 that was 42 pips. Finally, during the next 2 ½ hours it reached 97.77 that was another 94 pips so a total of 252 pips in about 3 hours. It was absolutely amazing.

If at 8:30am EST NFP > -250K USD JPY will go long 40-50 pips & if < -400K it will go short 40-50 pips.

August 07,2009, 8:30am EST Non Farm Payroll/NFP/ Non Farm Employment Change a high impact Forex trading news & is expected to be -325K whereas the previous number was -467K. It is the Change in the number of employed people during the previous month, excluding the farming industry. If the number comes out to be >-250K USD JPY should go long 40-50 pips and if it comes to be < -400K it should go short 40-50 pips.

MUST Consider Forex Market Hours/Overlapping Sessions/Volatility/News before any trade.

Because of the overlapping of the time of Forex Markets all over the world one or the other market is open at any particular time. That's why it is literally called 24/7 so any currency can be traded 24 hours a day and anytime. But practically the brokers are closed at the weekends from Friday afternoon 4:00pm Eastern Time to Sunday afternoon 5:00pm Eastern time or we can also say Forex trading hours are 22.00 Sunday UTC to 22.00 Friday UTC (Universal coordinated time) which was former known as GMT or Greenwich Mean time. Also there are some major markets in which the volatility is good and there are more opportunities for profits so setting up your time according to that is the best way to be successful.

We MUST consider before taking any trade:-

1. Consider how many markets are open worldwide at the time you open any trade.
Taking all the markets under consideration is practically impossible so we should at least take the major Forex markets in account to trade. E.g. New York, Tokyo, Sydney and London. These are the 4 major markets we must target. The market hours of these currencies are as follows:-

We would like to recommend a nice website where you can have this live session online or even you can CLICK HERE to download Forex Market Hours monitor v2.12 or download the latest update of a free utility for your computer for the Forex Session Monitor from http://www.forexmarkethours.com/


2. Consider how Many overlapping markets are open before taking any trade.

More the Overlapping Sessions more the Opportunities.

3. Consider the impact of that market on the volatility.
Some of the markets have better impact on certain currencies than on others. We should also consider that and choose the session appropriate for your trading style. The most influential currencies in the Forex market are USD and EURO they are traded almost 3 times more than the other currencies.
4. Consider the time of that market when they trade the most?
Most of markets have more volume of trading at the starting few hours and at the closing time of that market.
5. Apart from timing is there anything else which makes a significant effect on the market?
Yes. The “NEWS”. Never underestimate any news. Be informed well about the potential and the risks of that news on the currency. News can Make you or Break you. Keep your stop loss tight enough according to your appetite or else stay away from it if you are not comfortable.

EUR USD reaches its highest price of this year at 1.4445

EUR USD reaches its highest price of this year at 1.4445. After a good Bullish rally yesterday price is stagnated around 1.4445 and has started coming down and has already reached 1.4000. The price is wandering around 1.4426 Monthly Resistance 1 and 1.4399 Weekly Resistance1. The position traders who were on long trades are advised to tighten the stop loss or treat it as the time to take profit. Also is expected to go short to a maximum of 1.3000 once the trend sets in. The previous highest peak of EUR USD was on 18th Dec. 2008 at around 1.4720 so we might expect a few more highs before it actually goes short. But considering short trades or getting ready for the short trades won’t be a bad idea. Happy Trading.