Henry Liu
Former FPA Special Consultant
- Messages
- 473
Hey folks:
It was a great week for news trading as most high impact tradable news releases were scheduled apart for maximum market movement. Here's what happened:
1. Tue August 17, 2010 4:30am EDT - UK CPI y/y - No Trade
Historical Chart & Data
2. Wed August 18, 2010 4:30am EDT - UK MPC Meeting Minutes Trade Triggered - 120+ pips of potential
3. Thu August 19, 2010 4:30am EDT - UK Retail Sales Trade Triggered - 162 Pips of Potential
Historical Chart & Data
4. Fri August 20, 2010 7:00am EDT - CA Core CPI No Trade
Historical Chart & Data
Total Potential Pips: 282 Pips.
***
As far as weekly trend, this is what I wrote:
1. USDCAD dropped to the Support at 1.0250 and when up to the 1.0500, giving us about 250+ pips of potential Gain.
2. USDJPY dropped to the support at 85.00 3 times, each giving us a chance at 50+ pips of gain.
3. EUR/USD consolidated above the 1.2910 area, then at the closing on Friday it's back around 1.2700 = 210 Pips of Gain.
Total Weekly Trend Potential Pips = 510 Pips
***
Pre-News Trading:
1. UK CPI (08/17) Pre-selling would yield about 50+ pips if you waited to enter at the top.
2. UK MPC (08/18) Pre-selling would yield up to 88+ pips if you got in early Asian session.
3. UK Retail (08/19) Pre-selling would yield up to 92+ pips. The entire Asian market was selling off GBP.
4. CA CPI m/m (08/20) Pre-selling would give you a negative on this trade, as the entire market was driven by risk sentiment. If you hold on to the last minute and got in at the worst entry, you are looking at -120 Pips... (however, pre-news didn't fail because of wrong analysis, it failed because of risk aversion sentiment... you can check other charts and see it was an one-way street for USD and JPY which gained across the board).
Total Potential Pips on Pre-news = 110 Pips.
***
Total Potential Pips as result of this week's analysis: 902
If you only got 25% of that, you are looking at:225 pips.
If you made some pips this week as a result of my analysis. I'd love to hear from you. Please kindly share them here.
Also if you use Twitter and Facebook, you can easily share my analysis by clicking on the share buttons above...
Thank you!
It was a great week for news trading as most high impact tradable news releases were scheduled apart for maximum market movement. Here's what happened:
1. Tue August 17, 2010 4:30am EDT - UK CPI y/y - No Trade
Historical Chart & Data
2. Wed August 18, 2010 4:30am EDT - UK MPC Meeting Minutes Trade Triggered - 120+ pips of potential
3. Thu August 19, 2010 4:30am EDT - UK Retail Sales Trade Triggered - 162 Pips of Potential
Historical Chart & Data
4. Fri August 20, 2010 7:00am EDT - CA Core CPI No Trade
Historical Chart & Data
Total Potential Pips: 282 Pips.
***
As far as weekly trend, this is what I wrote:
As I've said time and again, when we have a strong week, such as the one we saw last week, we are most likely to see some consolidation before the market moves further. I do believe that the short-term trend has changed towards pro-USD, but we may see some rebounding and consolidation... therefore, I believe we could get better positioning if we just remain a bit patient.
I'd still be looking to go LONG on USD/JPY and USD/CAD. I'd be looking at support levels to BUY these pairs if given the chance...
As far as EUR/USD is concerned. I'm eyeing the 1.2900~1.3000 area for possible SELL. Even though EUR/USD is at 1.2750 level at the time of this post, we could get a rally back above those levels on a positive news from Europe, possibly the German Zew Economic Sentiment on Tuesday. The idea is to wait for the release and look for the best area to sell. A positive ZEW release is NOT enough to change the trend on EUR. It may provide temporary support, but eventually EUR/USD will head towards the 1.2000.
1. USDCAD dropped to the Support at 1.0250 and when up to the 1.0500, giving us about 250+ pips of potential Gain.
2. USDJPY dropped to the support at 85.00 3 times, each giving us a chance at 50+ pips of gain.
3. EUR/USD consolidated above the 1.2910 area, then at the closing on Friday it's back around 1.2700 = 210 Pips of Gain.
Total Weekly Trend Potential Pips = 510 Pips
***
Pre-News Trading:
1. UK CPI (08/17) Pre-selling would yield about 50+ pips if you waited to enter at the top.
2. UK MPC (08/18) Pre-selling would yield up to 88+ pips if you got in early Asian session.
3. UK Retail (08/19) Pre-selling would yield up to 92+ pips. The entire Asian market was selling off GBP.
4. CA CPI m/m (08/20) Pre-selling would give you a negative on this trade, as the entire market was driven by risk sentiment. If you hold on to the last minute and got in at the worst entry, you are looking at -120 Pips... (however, pre-news didn't fail because of wrong analysis, it failed because of risk aversion sentiment... you can check other charts and see it was an one-way street for USD and JPY which gained across the board).
Total Potential Pips on Pre-news = 110 Pips.
***
Total Potential Pips as result of this week's analysis: 902
If you only got 25% of that, you are looking at:225 pips.
If you made some pips this week as a result of my analysis. I'd love to hear from you. Please kindly share them here.
Also if you use Twitter and Facebook, you can easily share my analysis by clicking on the share buttons above...
Thank you!
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