Wait to see the wood from the trees, the wheat from the chaff, and any other pithy/well known analogy that you might like to throw in as I have said many times before, and my illustrious colleagues have highlighted again today.
I’m sure there’s many of you who will throw caution to the wind and go into the data release with a position based on your own guesswork. And indeed there will be many of you going into the release with long-term plays that you’ll keep regardless, and that’s also your perogative.
And there’ll be many of you who probably wish we could come up with the definitive trading strategy every time we approach a major risk event. But really, it’s not a cop out that we keep repeating the same mantras just sound trading advice.
We can’t possibly know what the data might be so let’s just focus on the subsequent price action and identify potential entry/exit points.
Areas I’m particularly looking at, (as we probably all are) as opposed to opportunistic pip bashing inbetween are:
GBPUSD 1.6300-30 1.6500-10 1.6585-1.6615
EURUSD 1.3500-30 1.3650 1.3725-50
EURGBP 0.8200-30 0.8300-20
USDJPY 104.00 105.50 106.00
AUDUSD 0.8800 0.8850 0.8950
In all these cases I’ll be looking to get long on dips and short on rallies with tight-ish stops dependent on price action
All the punting inbetween will be largely meaningless and as potentially damaging to the pocket as it can be lucrative. But that’s not to say you shouldn’t be involved and I will certainly be having a few trades up and down. Just understand your risk rewards and don’t try to over analyze.
Good luck out there and have a great week-end