Forex Trading Signal 06/03/08b

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: 6-3-2008review.swf

Hi res: 6-3-2008preview.swf

Let's review what happened on Sunday and Monday.

Australian Retail Sales came out lower than expected: -0.2% versus 0.2%. AUD/USD moved by over 40 pips but the initial spike was pretty big although eventually it retraced. I must admit it was not that easy to make money on this report, however.

UK Manufacturing PMI did not move the market at all.

U.S. ISM Manufacturing came out better than expected. With a deviation of +1.1 USD/JPY moved not so well. We got about 20 pips move on USD/JPY, and then it reversed completely. USD/CHF, GBP/USD and EUR/USD had similar price action. It was a quite disappointing price action.

Then we had Australian Building Approval, a small indicator with a huge deviation. It came out at 7.8% versus 0.2% expected. AUD/USD spiked up by 20 pips and then it moved another 20 pips. We don't trade this report, and normally it is not tradable. However, this is a good example that once a blue moon even small indicators can move the market if there is a huge deviation AND some focus on them.

The Interest Rate Statement came out as expected but the statement was a little dovish. Watch the video for more details. To make the long story short, I am short on AUD/JPY and still on that trade.

I did not recommend to trade Swiss CPI but this time it deviated greatly: it came out 2.9% versus 2.4% expected. USD/CHF moved by only 8 pips so even with this big deviation Swiss CPI is simply not tradable. Next 30 minutes USD/CHF was a the prerelease level, and then following moves were based on the dollar weakness so EUR/USD and GBP/USD was moving as well, and they had nothing to do with Swiss CPI.

Let's talk about Wednesday.

1. Tuesday, June 3rd, 2008 (9:30 p.m. New York Time) AUSTRALIA
At 9:30 a.m. we will have Australian GDP q/q which is expected to come out at 0.3% I would trade 0.2 deviation on it. If it comes out at 0.5% or higher, I would go long on AUD/USD. If it comes out at 0.1%, I would short AUD/USD or AUD/JPY. If the trigger is hit, I would expect 40 pips price action.

That's all for now.

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