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Forex Signal (Tue, May 18, 05:00 am EST) German ZEW

Discussion in 'Current Forex Trading Signals' started by Crazy Cat, May 17, 2010.

  1. Crazy Cat

    Crazy Cat Former FPA Special Consultant

    Sep 30, 2007
    Likes Received:
    Hi there :)

    This is Crazy Cat writing.

    On Tuesday, May 18th (5:00 am New York Time) we will have German ZEW Economic Sentiment coming out. It is expected to read 45.0. Last month it read 53.0.

    In addition to ZEW Economic Sentiment, we will also have ZEW Current Situation Index coming out. It's not so important, and it almost never conflicts with the main report. If it does conflict, then stay out of the trade.

    Please read what this indicator means and how it affects the EUR/JPY by going to this link: http://www.forexpeacearmy.com/forex...tions/7441-german-zew-economic-sentiment.html

    The trigger for this indicator is 9. This means that if ZEW Economic Sentiment comes out at 54.0 or higher, EUR/JPY will probably go up by 30 pips or more in the first 45 minutes of the report. If it comes out at 36.0 or lower, EUR/JPY will probably go down by 30 pips or more in the first 45 minutes of the report.

    Recently this indicator did not perform well so that's why I use such big deviation. Most likely it will be a no trade.

    Obviously, the bigger the difference between expected and actual numbers, the bigger will be the move.

    If you miss the initial spike, don't worry, you can still make money on the after-spike move. Click here to read the after-spike retracement strategy for this report: http://www.forexpeacearmy.com/forex...ntiment-after-spike-retracement-strategy.html

    For example: on April 20th, German ZEW Sentiment came out at 53.0, versus an expectation of 45.1 and we saw some price action although it was not something I was impressed. However, I still think it may be worthy to at least observe it:
    Forex news trading currency exchange charts

    You can study the entire history and charts of this report by following this link: Forex News Trading | Details and History for GER ZEW Economic Sentiment

    If you don't feel you want to trade it, feel free to skip it as this is a quite weak report right now although sometimes it may produce some price action.

    Crazy Cat
    #1 Crazy Cat, May 17, 2010
    Lasted edited by : Sep 8, 2016
  2. West Coast Pips

    West Coast Pips Sergeant

    Sep 24, 2009
    Likes Received:
    I am either going to trade this release with a small amount of lots or not at all. I don't like the fact EUR CPI y/y and CPI Core y/y are coming out the same time as ZEW. I have traded EUR CPI in the past and it can move the market. So the evident thing here is that ZEW and CPI can conflict causing nasty price action. Do you really want that?

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