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Forex Trading Signal 10/08-09/08

Discussion in 'Current Forex Trading Signals' started by Crazy Cat, Oct 8, 2008.

  1. Crazy Cat

    Crazy Cat Former FPA Special Consultant

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    Hi there my friend.

    Sir Pips is still out of town so no video today, and I got common cold or something (and feel really bad) and I did not feel like writing anything earlier today. Sorry about that.

    Well, Australian Central bank did cut the rates by 1% which was shocking for the market. Whoever had SNW set up on this report, it was a trade of the year. I saw people making thousands of dollars or doubling their accounts.

    But also today morning at 7:00 NY time The Federal Reserve and six other major central banks from around the world slashed interest rates Wednesday in an attempt to prevent a mushrooming financial crisis from becoming a global economic meltdown.

    The Fed reduced its key rate from 2 percent to 1.5 percent. In Europe, which also has been hard hit by the financial crisis, the Bank of England cut its rate by half a point to 4.5 percent and the European Central Bank sliced its rate by half a point to 3.75 percent.

    Also cutting rates were the central banks of China, Canada, Sweden, and Switzerland. The Bank of Japan said it strongly supported the actions. (from Chicago Tribune, Chicago breaking news, Chicago sports, Chicago weather and traffic, business, jobs -- chicagotribune.com)

    Today we are going to have Australian Employment Change m/m. It is expected to come out at 0. The good question is if the market is going to care about it at all - this is just the day after interest rates cut in Australia, and same day after interest rates cut in the USA, Canada and Europe. If you like to take a risk, I guess you can try to use 20K triggers, that is if it comes out at +20K or higher, I would buy AUD/USD and expect 35 pips move (and probably fast retracement). If it comes out at -20K or lower, I would sell AUD/USD and expect 35 pips move as well. We will also have unemployment rate which is expected to come out at 4.3%. 0.2 deviation on this is significant and lower unemployment is good for the AUD, and higher unemployment is bad for the AUD. If this deviates by 0.2 or more, this may help your trade (if not conflicting) or turn your trade around if conflicting. Last month we had a great move caused primarily by the unemployment rate.

    Again, if this is going to work, meaning if the market is going to care about it, I don't know. I still did not decide if I want to trade it.

    On Thursday we will not have anything tradable (unless UK wants to cut the rates again) so there will be no separate email for Thursday.

    To Our Success!
    -Crazy Cat
     

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