During its relatively brief history, the ADP report has been both volatile and a poor predictor of the initial estimate of non-farm employment from the Department of Labor. The figure for November, released soon after the open of today's New York session, was simply too high for the market to ignore, as the dollar gained strength across the board. The EUR/USD, like the other major currency pairs, provided an entry on a retracement during the second 3-minute candle after the news. A simple Fibonacci study helped traders predict the first target zone for the subsequent move below the 4700 level. London close arrived with a 5/8 cross before the euro reached our ultimate target at the M1 pivot point, but a profit of 40 to 60 pips [depending on exit strategy] on the eve of two central bank rate decisions, made for a fine session of trading.
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