How to trade at NFP?

Usually, average hourly earnings don't print positive. I have seen very few times NFP and Hourly earnings published positive together in the last 13 years.

When companies hire more people, it's expected that they don't want to pay more and overtime. But, on the other side, companies don't recruit new people, and then they pay more overtime to their existing workers.

That's why most of the time, we see Either NFP prints post or hourly earnings.

Hourly earning is essential for the following CPI report. I mean, inflation reports are related to hourly earnings.

NFP is the main report; there is no doubt. But in some cases, hourly earnings and unemployment play a significant role than the NFP. Moreover, especially when central banks want to raise rates, in the meantime inflation is essential.

Central banks need more than 2% inflation to raise bank rates. In that case, hourly earnings are more important than NFP.

So, it is expected that NFP will print positively than the previous report today, and hourly earnings may not fulfill its forecast. But last CPI reports were positive, So, it won't be wrong as well.


What to do while you are trading NFP?


When central banks are not hiking bank rates market always follows NFP. Whatever the other's reports are. If NFP print is upbeat, we should buy the USD.

But keep in mind, though NFP reports are printed positive, hourly earnings and unemployment may drop.

It is essential to keep in mind always that the market follows NFP eventually, not initially.

So, if other reports print negative, The USD will become weak first. Then, after 5 minutes or 15 minutes, the USD will follow NFP from any swing area.

On the other hand, If other reports prints positive but NFP report prints negative. In that cases, the USD will spike to the upside, but ultimately it will drop.

Just keep in mind the situation that central banks are in rate-hiking mode or not. So give priority hourly earnings reports when the central banks are in rate-hiking mode. And usually, give priority NFP reports every time.


How To Handle Technically While Trading NFP?

If you want to handle the market at NFP, you should know swing trading and the uses of Fibonacci retracement and Fibonacci extension.

Use 5 minutes candle. For example, the market closed with 5 minutes bearish candle, NFP printed negative, and other reports printed positive. So, the USD will spike to the upside first.

So, if you are good at swing trade, you can sell from the swing area. Otherwise, you should use Fibonacci tools.

If the market closed with a bearish candle, that means it will correct to the upside nearly 50% fibo area. So, go short from fibo 50% area and use Fibonacci extension tolls to set your take profit area at 61.8%.

Just do opposite things if NFP prints positive and other reports prints negative.