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Forex Signal (Wed February 23 2011, 10:00am NY Time EST) - US Existing Home Sales

Discussion in 'Current Forex Trading Signals' started by Henry Liu, Feb 22, 2011.

  1. Henry Liu

    Henry Liu Former FPA Special Consultant

    Jul 5, 2010
    Likes Received:
    US Existing Home Sales is expected to remain unchanged from the previous month as current market situation is showing signs of bottoming out on the housing sector. Here's forecast:

    Existing Home Sales Forecast 5.27M Previous 5.28M

    The Trade Plan

    Because the Housing sector is one of the most focused news events out of the US, this release will certainly cause some volatility in the market, especially if our tradable figures (+/- 400K) were hit. With the focus of the nation, and of the world, on the status of U.S. housing sector, this release may bring about a strong sentiment of risk appetite/aversion if our BUY/SELL trigger is hit…

    If our buy tradable deviation is hit, or 5.70M figure is released, we should look to SELL EURUSD after the release. If our buy tradable deviation is hit, or 4.80M figure is release, we should look to BUY EURUSD as USD should be sold off again.

    We'll be looking to trade this release using the after-news retracement trading method. We'll wait for the release, wait for market reaction, and wait for retracement before jumping in. For more information:
    Henry's News Trading Method.

    The Market
    With the U.S. housing market bottoming and finally showing signs of improvement, market is expecting a on trend improvement in today's housing number when compared to last month's release.

    However, as always, seasonal factor is always important to consider, with consumer confidence still suffering, this release could come out just in-line or slightly worse... At any rate, unless we get a surprise release, we should not jump into the market.

    Additional Thoughts
    This release is scheduled at 10:00am US Time, usually it is the last high impact news for the NY session, so we may see more volatile market regardless of the release figure because many traders may just be waiting for this news to be out of the way first.

    Pre-news Considerations
    There is no pre-news opportunity for this release.

    “Measures the annualized number of existing residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because large purchases tend to be made by consumers that are optimistic and confident in their financial position. The sale of a home also triggers commissions for real estate agents, and often home owners will purchase goods such as appliances and furniture shortly after purchasing a home. Traders watch this report closely as it’s the month’s first demand-side housing indicator to be released.”

    Historical Data & Chart For US Existing Home Sales


    #1 Henry Liu, Feb 22, 2011
    Lasted edited by : Sep 8, 2016
  2. Johnass

    Johnass Recruit

    Feb 1, 2011
    Likes Received:
    Thanks for your help Henry I hope you make trillions
  3. kaludurage subasingha

    Dec 14, 2010
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    excellent support

    excellent support:)

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