Trading the Nonfarm Payroll, EURUSD 3 Apr 09

The market was poised to come down lower with a descending wedge pattern. I setup the trade to short the market below my support after the NFP announcements. The initial reaction to NFP was a poorer than expected result This brought the EURUSD 50 pips upwards. However that was it.



Prelude:
As described previously. I also took a reverse trade expecting the price to snap back to the MAs.


The Trade:
I made 8 pips from the reverse trade with the intention of trading the price back to her MAs. 2 reasons for this; NFP announcements was not as bad as sentiments expected of 700k (came out around 659k), in news announcements the first move is always false. Furthermore the initial market sentiment was to go short.
Hence I setup my short trade for the wedge pattern. Short at 1.3420, SL 7.5 pips and TP @ 1.3400. I made 1 pip from the second trade.


On Hindsight:
Trading the news announcement is really very tentative. As prices shoot up and down much more than in normal times. A protective SL of 7.5 pips is really too little. I was lucky not to be walloped in my second trade.
Twice, I had the opportunity to close my second trade at 8 pips and then 12 pips profit but I failed to capitalise. Always take what the market gives you.
Could have entered earlier when trading the snapback. Much earlier.