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Forex Trading Signal 02/01/08

Discussion in 'Current Forex Trading Signals' started by Crazy Cat, Feb 1, 2008.

  1. Crazy Cat

    Crazy Cat Former FPA Special Consultant

    Sep 30, 2007
    Likes Received:
    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.

    Part 1: HI-res.: 02-01-2008thursreview.swf

    Part 2: HI-res.: 02-01-2008fridaypreview.swf

    Let's first review what happened earlier today.

    At 2 a.m. we had UK Nationwide House Prices. It let enter us into trade with a minimum trigger. However, there was a very strong U.S. dollar appreciation from 2 to 4 a.m. GBP/USD did not do so well but GBP/JPY performed much better. I personally lost a few pips on GBP/USD but this is life, it happens.

    At 5 a.m. we had Eurozone CPI coming out. Came out 3.2% versus 3.1%, and we looked for 0.2 trigger to trade it so it was a no trade.

    Then at 8:30 a.m. we had several reports coming out from the USA and Canada, and everything came out as expected except one: the Initial Jobless Claims came out at 375 K versus 320K expected. That was a huge deviation. Usually 15 to 20K deviation is big. As soon as I saw that, I immediately gave a short trade in the Diamonds room. I entered at 106.04 and the price moved to about 105.72, so from the prerelease price it moved by over 40 pips in just a few minutes. I managed to cash some pips but unfortunately USD/JPY was unable to break lows.

    Let's now talk about tomorrow.

    1. Friday, February 1st, 2008 (4:30 a.m. New York Time) UK
    At 4:30 a.m. we will have UK Manufacturing PMI coming out. It is expected to come out at 52.5. Based on past performance, triggers such as 1.4 or 1.5 were not successful. I would use 2.0 trigger on it. If it comes out at 54.5 or higher, you may consider buying GBP/USD and expect 25 pips of a price action. If it comes out 50.5 or lower, you may consider to sell GBP/USD for 25 or 30 pips of a price action.

    2. Friday, February 1st, 2008 (8:30 a.m. New York Time) USA
    At 8:30 a.m. we will have U.S. Non-Farm Payroll and the Unemployment Rate. Last month we had 0.2 deviation on the Unemployment Rate. When it deviates by 0.1, it is not that big deal but whenever you get 0.2%, in any country, it is significant and tends to be commanding. If it comes out 5.2%, that would be weakening the U.S. dollar. If it comes out at 4.8%, it would very strengthening the U.S. dollar. The Non-Farm Payroll is expected to come out at 65K to 70K (consensus) but actually the range is even wider. With a bad Initial Jobless Claims today and warnings from the Feds this week about a weak jobs market, people worry that it will be a bad number but at the same time we had very good ADP Employment number two days ago, and lower Initial Jobless Claims in a few weeks in a row before this week. As a result, there is a lot of confusion in the market. I am expecting pretty good moves if we get a tradable trigger. I would trade USD/JPY on this one. If it comes out at 150K or more positive, that would be a clear buy USD/JPY opportunity, looking for 50 to 100 pips in the first hour of the report. If it comes out at 0 or negative, that would be a very clear sell signal on USD/JPY, and you can also expect 50 to 100 pips in the first hour of the report. Watch out for revisions of the prior number as they sometimes can move the market to totally opposite direction. For example, last month it came out at 18K. If this month it came out at 0, but last month is revised to 100K, you may get initial pop down on the 0 number but since last month was revised by over 80K, you will see completely reversal.

    3. Friday, February 1st, 2008 (10:00 a.m. New York Time) USA
    At 10 a.m. we will have U.S. ISM Manufacturing Index coming out. There is over 6.0 range on expectations so we will be trading more conservative triggers than usually. I think 2.2 trigger should be enough. If it comes out at 49.5 or higher, I would buy USD/JPY. If it comes out at 45.1, I would sell USD/JPY. If the trigger is hit, I would look for 40 to 50 pips of the price action. If you want to be more aggressive, especially if the U.S. Non-Farm Payroll is muted and it looks like they are waiting for the ISM indicator, than you can try 1.5 trigger so you may want to buy USD/JPY at 48.8 or higher, and sell USD/JPY at 45.8 or lower.


    Good luck tomorrow!

    If news trading seems to be very interesting for you, then I suggest you to go to www.forexdiamonds.com 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
    #1 Crazy Cat, Feb 1, 2008
    Lasted edited by : Aug 15, 2015

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