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. LIKE YESTERDAY, THERE ARE TWO PARTS OF THE VIDEO.
Part 1: HI-res.: 01-31-2008fomcreview.swf
Part 2: HI-res.: 01-31-2008thurspreview.swf
Earlier today we had 3 reports coming out.
The ADP Employment Change came out at 130 K versus 40 K expected. To be more conservative, I set up 100 K trigger myself but if you were more aggressive and set up 90K trigger, than you had not bad trading opportunity. Prerelease came out at 1.9922 and we traded down about 50 pips in the first 15 minutes. After 15 minutes it was all screw up by the GDP indicator that came out very low at 0.6 versus 1.2% expected. It moved up the pound by 25 pips but the for the GDP indicator EUR/USD worked better as going up from 72 to 04 so it was 32 pips move. Because of conflicting reports and the Interest Rate report coming up in a few hours, it was good to exit rather faster than later.
Then we had U.S. Interest Rate Statement, and they did cut the rates by 0.50% to 3.00%, as expected. However, even if it was as expected, 20 to 25% of the market expected a cut by only 25 bp. That's why we saw a rally on EUR/USD, GBP/USD or AUD/USD. Within an hour the EUR/USD moved by about 120 pips so it was a huge move up. When I was trading it live, I was focused on the pound but it was not performing as well as Euro. Because the Euro gave a nice opportunity to enter at 4820, I switched to Euro. The AUD/USD performed extremely well, and you could make tons of money on that pair. If you are looking at the charts, keep in mind that the FOMC released the decision to public a few seconds early so that's why you see a price action a minute before the scheduled report.
YOU CAN LEARN MUCH MORE BY WATCHING THE VIDEO. By much more I actually mean MUCH more. In order to keep this text short, I cut a lot of stuff that Sir Pips said on the video.
Let's now talk about tomorrow.
1. Thursday, January 31st, 2008 (2:00 a.m. New York Time) UK
At 2 a.m. we will have UK Nationwide House Price m/m coming out. It is expected to come out at -0.4%. I would use 0.3 trigger on this one. Keep in mind that this is a quite new indicator so don't be so sure with your decisions and consider smaller profit targets like 10 to 20 pips, If it continues going on, so be it. If it gives a really good number such as 0.6 trigger, you may try to put a long term sell trade on EUR/GBP and try to bank 100 pips over the time, or if it comes very low, you may want to buy GBP/EUR for a long term position. In the short term we trade I would use 0.3 trigger. If it comes out at -0.1% or better (0 or positive), I would look to buy GBP/USD or GBP/JPY, and expect 25 to 30 pips of the price action on GBP/USD. If it comes out lower than expected, such as -0.7 or more negative, I would sell GBP/USD or GBP/JPY for a similar price action.
2. Thursday, January 31st, 2008 (5:00 a.m. New York Time) EURO ZONE
At 5 a.m. we will have Eurozone Estimate CPI y/y. I would trade this with 0.2 trigger. If it comes out at 3.3% or higher, you want to buy EUR/USD, and 2.9% or lower you want to sell EUR/USD, looking for 25 pips or more in the first half hour of the report.
3a. Thursday, January 31st, 2008 (8:30 a.m. New York Time) CANADA
At 8:30 a.m. we will have Canadian GDP coming out. I would trade it with 0.2 trigger. If it comes out 0.4% or higher, I would sell USD/CAD, looking for 30 pips or so of the price action. If it comes out at 0 or negative, that would be weakening the Canadian dollar, and I would buy USD/CAD and look for 30 pips or so of the price action. Some people may want to trade EUR/CAD because of the U.S. reports coming out at the same time but keep in mind that if the U.S. report moves EUR/USD, it will also affect EUR/CAD.
3b. Thursday, January 31st, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will also have U.S. Core PCE. If it deviates by 0.2 which happens very rarely, it will move the market as well. If it comes out at 0.4% or higher, that is going to be strengthening for the U.S. dollar, and you can go short on EUR/USD or GBP/USD, looking for 25 to 35 pips of price action. If it comes out at 0 or negative, that would be weakening for the U.S. dollar, and you want to go long on EUR/USD or GBP/USD, whichever looks better at that time. Of course, if you have all other indicators in line deviating the same way, it may move the market even more.
3c. Thursday, January 31st, 2008 (8:30 a.m. New York Time) USA
Also at 8:30 a.m. we will have U.S. Initial Jobless claims coming out. It is expected to come out at 320 K. If there is a 20 K trigger on the initial jobless claims, you may consider entering the trade. If it comes out at 340 K or higher, that would be weakening the U.S. dollar, and I would trade USD/JPY on that ASSUMING THERE ARE NO CONFLICTS, and I would sell the USD/JPY. If it comes out at 300 K or lower, that would be third month in the row it is lower, and it would be a very positive indication that jobs are doing OK, and I would buy USD/JPY on this, expecting around 30 pips of the price action.
4. Thursday, January 31st, 2008 (9:42 a.m. New York Time) USA
At 9:42 a.m. we will have Chicago PMI. Not a great indicator so I will not be paying attention to it.
If the video helped you, please leave a feedback.
That's all for today.
If news trading seems to be very interesting for you, then I suggest you to go to Forex Diamonds - News Trading Education 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
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. LIKE YESTERDAY, THERE ARE TWO PARTS OF THE VIDEO.
Part 1: HI-res.: 01-31-2008fomcreview.swf
Part 2: HI-res.: 01-31-2008thurspreview.swf
Earlier today we had 3 reports coming out.
The ADP Employment Change came out at 130 K versus 40 K expected. To be more conservative, I set up 100 K trigger myself but if you were more aggressive and set up 90K trigger, than you had not bad trading opportunity. Prerelease came out at 1.9922 and we traded down about 50 pips in the first 15 minutes. After 15 minutes it was all screw up by the GDP indicator that came out very low at 0.6 versus 1.2% expected. It moved up the pound by 25 pips but the for the GDP indicator EUR/USD worked better as going up from 72 to 04 so it was 32 pips move. Because of conflicting reports and the Interest Rate report coming up in a few hours, it was good to exit rather faster than later.
Then we had U.S. Interest Rate Statement, and they did cut the rates by 0.50% to 3.00%, as expected. However, even if it was as expected, 20 to 25% of the market expected a cut by only 25 bp. That's why we saw a rally on EUR/USD, GBP/USD or AUD/USD. Within an hour the EUR/USD moved by about 120 pips so it was a huge move up. When I was trading it live, I was focused on the pound but it was not performing as well as Euro. Because the Euro gave a nice opportunity to enter at 4820, I switched to Euro. The AUD/USD performed extremely well, and you could make tons of money on that pair. If you are looking at the charts, keep in mind that the FOMC released the decision to public a few seconds early so that's why you see a price action a minute before the scheduled report.
YOU CAN LEARN MUCH MORE BY WATCHING THE VIDEO. By much more I actually mean MUCH more. In order to keep this text short, I cut a lot of stuff that Sir Pips said on the video.
Let's now talk about tomorrow.
1. Thursday, January 31st, 2008 (2:00 a.m. New York Time) UK
At 2 a.m. we will have UK Nationwide House Price m/m coming out. It is expected to come out at -0.4%. I would use 0.3 trigger on this one. Keep in mind that this is a quite new indicator so don't be so sure with your decisions and consider smaller profit targets like 10 to 20 pips, If it continues going on, so be it. If it gives a really good number such as 0.6 trigger, you may try to put a long term sell trade on EUR/GBP and try to bank 100 pips over the time, or if it comes very low, you may want to buy GBP/EUR for a long term position. In the short term we trade I would use 0.3 trigger. If it comes out at -0.1% or better (0 or positive), I would look to buy GBP/USD or GBP/JPY, and expect 25 to 30 pips of the price action on GBP/USD. If it comes out lower than expected, such as -0.7 or more negative, I would sell GBP/USD or GBP/JPY for a similar price action.
2. Thursday, January 31st, 2008 (5:00 a.m. New York Time) EURO ZONE
At 5 a.m. we will have Eurozone Estimate CPI y/y. I would trade this with 0.2 trigger. If it comes out at 3.3% or higher, you want to buy EUR/USD, and 2.9% or lower you want to sell EUR/USD, looking for 25 pips or more in the first half hour of the report.
3a. Thursday, January 31st, 2008 (8:30 a.m. New York Time) CANADA
At 8:30 a.m. we will have Canadian GDP coming out. I would trade it with 0.2 trigger. If it comes out 0.4% or higher, I would sell USD/CAD, looking for 30 pips or so of the price action. If it comes out at 0 or negative, that would be weakening the Canadian dollar, and I would buy USD/CAD and look for 30 pips or so of the price action. Some people may want to trade EUR/CAD because of the U.S. reports coming out at the same time but keep in mind that if the U.S. report moves EUR/USD, it will also affect EUR/CAD.
3b. Thursday, January 31st, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will also have U.S. Core PCE. If it deviates by 0.2 which happens very rarely, it will move the market as well. If it comes out at 0.4% or higher, that is going to be strengthening for the U.S. dollar, and you can go short on EUR/USD or GBP/USD, looking for 25 to 35 pips of price action. If it comes out at 0 or negative, that would be weakening for the U.S. dollar, and you want to go long on EUR/USD or GBP/USD, whichever looks better at that time. Of course, if you have all other indicators in line deviating the same way, it may move the market even more.
3c. Thursday, January 31st, 2008 (8:30 a.m. New York Time) USA
Also at 8:30 a.m. we will have U.S. Initial Jobless claims coming out. It is expected to come out at 320 K. If there is a 20 K trigger on the initial jobless claims, you may consider entering the trade. If it comes out at 340 K or higher, that would be weakening the U.S. dollar, and I would trade USD/JPY on that ASSUMING THERE ARE NO CONFLICTS, and I would sell the USD/JPY. If it comes out at 300 K or lower, that would be third month in the row it is lower, and it would be a very positive indication that jobs are doing OK, and I would buy USD/JPY on this, expecting around 30 pips of the price action.
4. Thursday, January 31st, 2008 (9:42 a.m. New York Time) USA
At 9:42 a.m. we will have Chicago PMI. Not a great indicator so I will not be paying attention to it.
If the video helped you, please leave a feedback.
That's all for today.
If news trading seems to be very interesting for you, then I suggest you to go to Forex Diamonds - News Trading Education 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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