This article is related to today’s news release which was mainly focused on Non-Farm Employment Change. Please read this article carefully to know how these kinds of news impact the markets: Non-Farm Employment Change and Its Impact on the Forex Market
Also please watch the related video HERE.
Also last night, we released a video and explained about the today’s news release event, and the way that it could impact the markets. Please watch the video: Forex News Trading: Employment and Unemployment News
Today morning, there was a Non-Farm Employment Change news release at 8:30am EST:
This news release occurred when we have already located a support level breakout on USD/CHF monthly, weekly and daily time frames:
According to our last night analysis that was done before the news release today morning, we expected the USD value to go down after the news release, and so the support level breakout we had already located on USD/CHF monthly, weekly and daily time frames would still be valid.
The previous Non-Farm Employment Change value was 4,800,000. The forecast for this month release was 1,550,000, but actual value released 1,763,000 today at 8:30am EST.
Therefore, when the Non-Farm Employment Change actual value is lower than the forecast value, and a lot lower than the previous value, then we expect that the USD value to drop. Although the actual value was 2.7 times lower, it didn’t impact the USD value that much. It made the market a litter noisy, but it didn’t make the USD value go down instantly.
The reason is that USD value had already started going down, and has broken below the sideways market range, several days before this news release. Read this article to see what was going on and how far the USD/CHF price goes down: Fibonacci Trading Strategy After Sideways Market Breakout
So, USD/CHF market was already a little oversold. But something that is important for now is that the today’s news released confirmed the support level breakout and short trade setup that we have located and followed on USD/CHF.
Therefore, according to our Yesterday’s Fibonacci Analysis, it is now more probable that USD/CHF goes down and reaches the 161.80% level.
The conclusion is that when there is a valid trade setup on the longer time frame, the future incoming news will be agreeable to it.