During NFP week, forex pairs can become difficult because traders adjust positions before the data. Spreads can widen, direction can flip quickly, and technical levels can break temporarily before the real move begins.
I prefer reducing size or waiting until after the release. If I trade before the data, the setup needs a very clear invalidation point and smaller risk.
The first move after NFP is not always the final move. Sometimes the market spikes one way, clears liquidity, then reverses when traders digest the details.
This is why I like scenario planning around data releases. If dollar strength holds after the second reaction, that is different from a one-minute spike.
I prefer reducing size or waiting until after the release. If I trade before the data, the setup needs a very clear invalidation point and smaller risk.
The first move after NFP is not always the final move. Sometimes the market spikes one way, clears liquidity, then reverses when traders digest the details.
This is why I like scenario planning around data releases. If dollar strength holds after the second reaction, that is different from a one-minute spike.
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