How to Trade on NFP Report Release?

 By Deya Hroob

What is NFP ( NonFarm Payrolls ) Report ?

NFP report represents the total number of paid workers in the U.S. minus farm employees, government employees, private household employees and employees of nonprofit organizations.

It's the most important and volatile release in any given month. Traditionally, markets respond with huge moves on the release of the data. Understanding this data release can help set up forex trades to take advantage of unexpected changes in employment.

NFP is an American indicator so USD pairs will be heavily impacted. If NFP report beat expectations it will likely be a positive for the USD. Conversely, if it  comes in below expectations it will be negative for the USD

• How to Trade on NFP Report?

It's important to know that trading NFP release is a short-term 
strategy and don't expect to profit plenty of pips.

We will use a 15-minute chart and follow these steps: 

* Before 15 minute of the release, open the chart and identify key support and resistance levels. 

* In order to catch the trade either way the market moves , we will place two pending orders. Buy order 10-pips above the resistance area  and sell order 10-pips below the support area.

*  It's a must to place stop loss both sides as there will be plenty of volatility and we won't risk huge losses of our capital. 

 * When the report got released, one of your orders will be activated. We shouldn't forget to cancel the other order.

I have provided two charts as examples  USD/JPY and EUR/USD 15-minute chart.

Remember - while the NFP can provide an opportunity for profit, it can also provide an opportunity for loss. So, you should use proper risk management.
Trade Wise And Good Luck,