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Forex Trading Signal 03/06/08

Discussion in 'Current Forex Trading Signals' started by Crazy Cat, Mar 6, 2008.

  1. Crazy Cat

    Crazy Cat Former FPA Special Consultant

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    Hi my dear Trader :)

    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.: 03-06-2008.swf

    Let's first review what happened earlier today.

    First, we had UK Services PMI which deviated greatly by 2.0. It was a great deviation (ignore what was said on the video, apparently Sir Pips was tired and mixed up comments with the U.S. indicator). Yesterday we gave 0.8 trigger on this so it did hit our trigger. GBP/USD moved about 130 pips in just 2.5 hours, or 70 pips in first few minutes. It was hard to get in, if possible at all, as the price moved so quickly; some lucky Secret News Weapon users, including myself, managed to bank a nice amount of pips right on the spike.

    Then we had ADP Employment Change which did not hit our trigger so it was a no trade. However, we saw a pretty good price action, 33 pips move on USD/JPY. Not bad at all.

    At 10 a.m. we had U.S. ISM Non-Manufacturing coming out. It came out about 2.0 above expectations but I gave 3.0 trigger on this so it was a no trade. The market just overreacted because the number came out at 49.3 which a contraction of the market (still below 50). As you know, however, the market is always right. USD/JPY almost instantly moved up by 30 pips to make 67 pips in the first 20 minutes. Last week we had good deviations on some indicators but the market was not moving accordingly. This week the market is overreacting at all.

    Tomorrow we are going to have a few things.

    1. Thursday, March 6th, 2008 (7:00 a.m. New York Time) UK
    At 7:00 a.m. we will have UK Interest Rate coming out. It is expected they will keep the rates unchanged this month and maybe cut rates next month or two months later. Actually, there is one economist that thinks they will cut the rates tomorrow but the vast majority of experts expect them to hold the rates at the current level. If they do cut the rates, it will be a great opportunity to sell GBP/USD, looking for 70 pips or more in the first hour of the report.

    2. Thursday, March 6th, 2008 (7:45 a.m. New York Time) EURO ZONE
    At 7:45 a.m. we will have Interest Rate Announcement out of Euro zone. It is expected they will hold the rates steady at 4.00%. If they cut or hike the rates, it will be worthy to take a trade. So, if they cut the rates to 3.75 (or less), it would be worthy to sell EUR/USD and expect 70 pips move in the first hour of the report. If they hike the rates to 4.25 (or more), it would be a good opportunity to buy EUR/USD and also expect 70 pips move (or more) in the first hour of the report.

    3a. Thursday, March 6th, 2008 (8:30 a.m. New York Time) CANADA
    At 8:30 a.m. we will have a few things coming out at the same time. First one is Canadian Building Permits. You can use 5% trigger here. If it comes out at 6.0% or higher, then it would be a sell signal on USD/CAD, looking for about 35 pips of move in the first hour of the report. If it comes out at -4.0% or more negative, it would be a buy signal on USD/CAD, and I would be looking for 35 pips move (or more) in the first hour of the report.

    3b. Thursday, March 6th, 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 which is coming out right before the Friday's U.S. Non-Farm Payroll so we may get another overreacting situation. It is expected to come out at 360K. If it comes out at 370K or higher, it would be a sell signal on USD/JPY. If it comes out at 345 K or lower, it would be a buy signal on USD/JPY. I would expect a solid 35 to 40 pips price action on this report.

    4. Thursday, March 6th, 2008 (8:35 a.m. New York Time) EURO ZONE
    After 8:30 a.m., probably around 8:40 a.m., ECB President Mr. Trichet will be speaking, giving clues about a future interest rate policy. Right now they are pretty much neutral. Any hints towards cutting or hiking the rates will result moves on the Euro but I would not try to trade this speech unless you are really experienced and you can interpret what he is saying by yourself.

    5a. Thursday, March 6th, 2008 (10:00 a.m. New York Time) USA
    At 10:00 a.m. U.S. Pending Home Sales. I would ignore that as it is the weakest housing indicator, and the other housing indicators were not performing too well recently.

    5b. Thursday, March 6th, 2008 (10:00 a.m. New York Time) CANADA
    At 10:00 a.m. we will also have Canadian Ivey PMI. I would trade it with approx. 5 trigger. If it comes out at 60 or higher, that would be a sell signal on USD/CAD, looking for about 25 to 30 pips of a price action. If it comes out at 50 or lower, it would be worthy to buy USD/CAD and look for 25 to 30 pips of a price action.

    That's all for tomorrow. Another busy day. As always, you can watch more detailed signal by clicking on the video link (ignore comments about the UK trade).

    If you are interested more in trading news, go to Forex Diamonds - News Trading Education as I am trading there all of mentioned indicators live. Join the room, and get a lot of education from me and other traders that are there. I post trade plans and talk about the trades as well as give entry and exit signal live while the market moves. You can try it with no risk for 21 days so if you don't like it it is free. If you find it useful, then you can stick with us and make grow you live account with us. I am pretty sure you will be satisfied but at least give a try.

    Thank you 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, Mar 6, 2008
    Last edited: Mar 6, 2008

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