Forex Trading Signal 01/24/08

Crazy Cat

Former FPA Special Consultant
This is Sir Pips.

If you wish to watch the video, just click on it, and then click on "play" icon. My video version is MUCH MORE detailed so I encourage you to watch it.

HI-res.: 01-24-2008.swf

Let's first review what happened earlier today.

First, we had UK GDP and BOE Minutes. The expectation for BOE was 6:3, 7:2 or 8:1 range, and the vote came out at 8:1, not hitting the 9:0 trigger that would constitute the buy signal. Also, the GDP q/q came out higher but not high enough. Before the news the GBP/USD was traded around 1.9570 and if you were an aggressive trader, you could have entered around 80 to 90. The price moved up a total of 40 pips in the first 5 minutes. The USD/JPY was going down at that moment so carry traders were suffering at that point, and it eventually dragged GBP/USD down as well. Anyway, it did not hit our buy signal.

The New Zealand Interest Rate statement came out as expected so it was a no trade. The price eventually moved up by 95 pips, and you might say I should have bought the NZD/USD. Again, this is the USD/JPY's job so it had nothing to do with the New Zealand dollar.


Tomorrow we are going to have a few things.

1. Thursday, January 24th, 2008 (4:00 a.m. New York Time) GERMANY, EURO ZONE
At 4:00 a.m. we will have German IFO. I would not trade this, leave it alone.

2. Thursday, January 24th, 2008 (8:30 a.m. New York Time) USA
Then at 8:30 a.m. we will have the U.S. Unemployment Claims coming out, and it is one of the rising stars now. It is expected to come out at 320 K. It is the best to trade 20 K trigger so if it comes out at 340 K or higher, it is more unemployment so it is bad for the U.S. dollar, and I would sell USD/JPY. If it comes out 300 K or lower, that's less unemployment and good for the dollar, and I would buy the USD/JPY. If the trigger is hit, I would expect 30 to 35 pips or more of the price action.

3. Thursday, January 24th, 2008 (10:00 a.m. New York Time) USA
At 10 a.m. we will have U.S. Existing Home Sales coming out of the U.S. If we get a shockingly low number, it will not really move the market like it used to. What people are looking for is if there is any sign of recovery here. You should just trade the upside trigger; the downside trigger may or may not work. Last week the housing market indicator had a huge sell signal and it completely went the other way. It is expected to come out at 4.95 M. I would trade a 0.2 trigger so if it comes out at 5.15 M or more positive, that should be good for the U.S. dollar and the equity, and I would buy USD/JPY.

4. Thursday, January 24th, 2008 (6:30 p.m. New York Time) JAPAN
Then at 6:30 p.m. we will have Tokyo CPI X Fresh Food y/y. It is expected to come out at 0.3, and last time it came out 0.3 as well. I would use 0.2 deviation on this. If it comes out at 0.5 or higher, I would sell USD/JPY (40 pips price action) or EUR/JPY or GBP/JPY. If it comes out at 0.1 or lower, I would buy USD/JPY or EUR/JPY or GBP/JPY and expect 40 pips price action on USD/JPY.

That's all for today.

If news trading seems to be very interesting for you, then I suggest you to go to and read everything about this service. It is a live trading service I provide with Felix, and I will be able to show you exactly what I am doing as I am leading hundreds of traders just like you every day with very clear strategies on when to get in and get out. As people are following my trades, they are learning how to trade the news, feel comfortable with trading and make good profits. We offer 21 days free trial so you can just try it and see how you like it.

Thank you very much, and good luck with your trades.

To Our Success!
-Sir Pipsalot

The video with the signal is recorded by Sir Pipsalot.
For your convenience, this text is written based on the video by Crazy Cat
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