Hi,
Im new to forex and im sorry if Im asking a really dumb or obvious question ahead of the US NFP results tonight but I want to understand the effect that this has on other currency pairs, for example the AUD/USD pair.
I traded the other night on the same pair earlier on in the week and got stopped out badly in the trade because of the ISM results and the momentum swing to the upside, and then immediately to the downside because of what happened to the USD.
So, to clairify, “IN THEORY” (and removing the fickle nature of investors like in the ISM case where it moved then ranged and couldnt make its mind up" IN THEORY: if the NFP result is better than expected the USD will rise and the AUD/USD pair will start to fall (by virtue of the USD gaining strength against the aussie dollar), and, if the NFP results are worse than expected, I should see the AUD/USD pair gain because of the lack of strength of the USD.
Also, in the case of the initial swing with everyone and thier automated scalping systems doing one tick trades… What can I do to avoid getting my existing long term trades stopped out.
My I shorted the pair @ 1.01835 with a stop at 1.024 with the intention that this will be a 30day trade…
Should I just set it super high 1.05??? for the announcement and then once the noise and spikes settle down, reset it back to my stop so I dont get kicked out by the scalpers?
Many thanks for helping a beginner understand this.