Firstly some forex trader try to forcast what the result of the economic release will be and place a trader prior to the release based on this.
For Example in, forecasting U.S. jobs data you can use employment component of PMI reports. If the employment component of three reports has increased from the previous month, it suggest that the number of new jobs created also increased.
A second strategy of forex trading the news is to wait until the figure has been released and trade based on how the market typicaly reacts to such scenario. For example if US retail sales beat expectation by a wide margin you might sell EUR/USD based on antisipated strength in the US dollar.
EUR/USD was a high of 1.2530 and low of 1.2405 a trader might put a buy stop order in at 1.2530 and a sell stop order at 1.2405. This is done with the expectation that the price break out above 1.2530 it will continue to rise and conversely if it breaks below 1.2405 that it will continue to fall.
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