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Economic Releases

One should probably not use Technical strategies to enter trades right around important Economic Releases such as the employment report.
Key levels of support and resistance will still come into play, after the fundamental data has played itself out in the market - but the short term technicals will hold little relevance.

Among the advantages to the retail fx trader in trading off fundamental data is that the information is readily accessible through sources such as Bloomberg and Reuters, and that the retail trader can actually act faster than the banks and hedge funds.

The impact of major economic news can take some time before it has finished impacting the market, and the day trader can use this to their advantage - benefiting from the momentum generated by the order flow of the bigger players.

The best opportunities are created when the news comes out way off expectation and the market scrambles to correct itself. This can happen quite frequently with releases such as the nonfarm payrolls part of the employment report.
For a good exit to a trade entered based on fundamentals, the trader should look to a significant technical level.

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This post first appeared on Forex | Snap To See How To Trade, please read the originial post: here

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Economic Releases

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