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8/10/2012 Monthly Unemployment Report (0230 HI time / 0830 EDT)
Forecast: 9.6K
Actual: -30.4K
Previous Revision: n/a
Rate Forecast: 7.2%
Rate Actual: 7.3%
SPIKE / REVERSE
Started @ 1.0044
1st Peak @ 1.0010 – 0231 (1 min)
34 ticks
Reversal to 1.0040 – 0233 (3 min)
30 ticks
Notes: Extremely negative report showing a loss of about 30K jobs when nearly 10K jobs added were expected along with an uptick in the unemployment rate. The large short spike was expected, but the inability to sustain the drop and no 2nd peak are surprising. The spike only crossed the S2 Pivot with all of the 3 major SMAs above the trade action before the report release. With JOBB you would have filled short at about 1.0031 with 6 or so ticks of slippage. Then close out when it hovered 3-7 ticks below the S2 Pivot for about 7-10 ticks. The reversal reclaimed most of the drop to 1.0040 in a quick 2 minutes. Then the market tried to fall again, but could only eclipse the S2 Pivot, finding solid support and rising slowly for the next few hours.