1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Forex Signal (Tuesday August 9, 2011 - 2:15PM EDT NY Time EDT) - US Federal Funds Rat

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Aug 8, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
    Jul 29, 2011
    Messages:
    547
    Likes Received:
    1
    US Federal Funds Rate
    Forecast 0.25%
    Previous 0.25%
    Pair to trade: EUR/USD
    The triggers we need: BUY EUR/USD: Looking for Emergency rate cut
    SELL: Any increase (very unlikely)


    Economical Impact: High
    Typical Result: Forecast is good for the currency at the moment.
    Occurrence: This is released monthly, about 40 days after the month ends

    About our Triggers:
    It is very unlikely the Fed will hike rates to 0.25% or decrease rates; however this is news trading and I will be there just in case we get a surprise or some sort of deviation. We will BUY EUR/USD if we see any form of increase and we will short SELL if we see an Emergency Rate cut which is more likely than an increase, due to current market conditions. There is 90% chance that this will be a NO TRADE.

    If our tradable releases are reached, there is a good expectation that the market will move 60-70 pips within 2 spikes in the first 15 minutes.

    Why do we care? And what is it?
    The rate decision is often priced in the market so it tends to be overshadowed by the FOMC Statement which is focused on the future. Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.

    Method to trade this: Stavro D’Amore Trading Method
    I will look for a 30% retracement in the original spike before entering a trade.
    I will sell half my position as soon as I hit the original high point of the first initial spike and place a SL at entry price. My TP level would be just before a resistance level, or if the chart decides to form a level looking at a 15 minute time frame, after news release.

    Historical Chart and Data for US Federal Funds Rate


    All the best

    Stavro D’Amore
     
    #1 Stavro D'Amore, Aug 8, 2011
    Lasted edited by : Sep 8, 2016
  2. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
    Jul 29, 2011
    Messages:
    547
    Likes Received:
    1
    Additional Anouncemet

    Guys, after last nights DOW plunged more than 500 Points, I would not be surprised if the FED releases some sort of Emergency rate cut or stimulus to encourage the markets again if they do please go long on EURUSD, and Short or short on USDJPY.

    All the Best

    Stavro D’Amore
     
  3. arafath077

    arafath077 Recruit

    Joined:
    Jun 15, 2011
    Messages:
    1
    Likes Received:
    0
    Good Job. Stavro D’Amore. God Bless You!!
     
  4. qwerty63

    qwerty63 Private

    Joined:
    Feb 6, 2010
    Messages:
    16
    Likes Received:
    0
    If there is no change in federal funds rate, can we expect short term raise in usd, f.e. usd/jpy just after release?
    thanks!
     
  5. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
    Jul 29, 2011
    Messages:
    547
    Likes Received:
    1
    That is a very good question usally Yes, but it will depend what is discussed at the FOMC
     
  6. Callen

    Callen Recruit

    Joined:
    Jul 3, 2011
    Messages:
    14
    Likes Received:
    0
    Would USD/CHF better than USD/JPY to short since they're more stable?
     
  7. Anthonia Taiwo

    Anthonia Taiwo Private

    Joined:
    Dec 29, 2010
    Messages:
    28
    Likes Received:
    1
    Thanks Starvo. That was great. Do you run a pamm account as there is no pm in this forum. I will like to discuss more investment options with your guide.
     
  8. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Joined:
    Jul 29, 2011
    Messages:
    547
    Likes Received:
    1
    Forum is specifically for news trading signals.
    My role here is to provide quality news trading signals.
    Should you wish to see my other experiences or discuss you can Google me.
     

Share This Page