Forex Trading Signal 05/29/08

Crazy Cat

Former FPA Special Consultant
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: 5-29-2008review.swf

Hi res: 5-29-2008preview.swf

The Norway interest rate statement came out as expected so no trade here.

At 8:30 a.m. we had U.S. Durable Goods X Transportation which came out much higher than expected (by 3.0). USD/JPY was already on the up trend. USD/JPY moved by about 50 pips in the first 4 minutes. Some people tried to wait for the reversal sign and enter the other way which is also a good way to make a few pips. I hope you were able to make some money on it.

Let's talk about tomorrow.

At 2:00 a.m. we are going to have UK Nationwide House Prices m/m. I would trade it with 0.5 trigger. If it comes out at 0 or higher, I would be looking to buy GBP/USD or GBP/JPY and expect 30 to 40 pips price action. If it comes out at -1.0 or lower, I would sell GBP/USD or GBP/JPY and expect 30 pips move as well. Smaller deviation still should create some price actions and you might get a good trade too but 0.5 is a very stable trigger.

At 3:15 a.m. we will have Swiss Employment number and at 3:55 a.m. we will have German Employment number so expect some price actions on CHF and EUR around that time. In general, higher unemployment is bad for the currency, and lower unemployment is good for the currency. Unfortunately, I don't have triggers for Swiss and German Employment.

At 8:30 a.m. we will have U.S. GDP, Initial Jobless Claims and Core PCE. The PCE will not matter this time so we can be focused on the GDP and the job market. The GDP annualized is expected to come out at 0.9%. I would be looking to trade a deviation of 0.4. If it comes out at 1.3% or higher, it would be positive for the U.S. dollar and I would buy USD/JPY and look for 40 pips move in the first 20 minutes. If it comes out at 0.5% or lower, that would be bad for the U.S. dollar, and I would sell USD/JPY and look for 40 pips move as well. However, a lot of people don't trust the GDP number saying that the U.S. government is "manufacturing" the numbers to eliminate the panic on the market. On the other hand, there are a lot of economists saying that now it is the time to buy things, and this is the time when things can get better. Such different views can provide some confusion on the price action. Also, we will have U.S. Initial Jobless Claims coming out at the same time. This can provide some confusion on the price action. Lately, we did not see huge deviations on this report. What I would do is use the Initial Jobless Claims report as a back up data so if the GDP comes out pretty close to expectations but the Initial Jobless Claims deviates in the same way, then I would enter a trade as well. If it comes out at 390 K or higher, it should be bad for the U.S. dollar and you should see some selling pressure. If it comes out at 350 K or lower, you should see some positive pressure on the USD/JPY. I think, however, people will care more about the GDP than the Initial Jobless Claims. For the extra informations, please watch the video.

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
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