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Forex Trading Signal 11/06/08

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

  1. Crazy Cat

    Crazy Cat Former FPA Special Consultant

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    Hi there my forex friend :)

    I was waiting for the Sir Pips video to just get a phone call that he was not able to make it. I am sorry about it.

    But let me review what happened on Wednesday.

    Well, a lot of things happened, right?

    UK report was not so great, it seems the signal was kind of late but the price action was OK. I personally made a few bucks.

    Then we had U.S. ADP which was screw up because of the government announcement regarding the interbank interest rates cut. Things like this happen but the good thing is I woke up right after the report....

    Then we had ISM Non-Manufacturing. Amazingly enough, USD/JPY did not move too much whereas USD/CHF, or GBP/USD or EUR/USD had a pretty nice move for the next 15 minutes. Believe it or not, I overslept this report as well... haha

    But I did not oversleep evening reports so I made nice money today... :) Employment report out of New Zealand was not a killer report but I managed to make 7 pips profit or so. I was expecting more but I took what was available to take. Cannot complain when I make money.

    Then we had Australian report... and I made a mistake but exiting immediately when I entered a trade so the price did not move that much yet. For some reasons I had impression I had gotten a late signal but it was on time. I still made around 25 pips or so but if you "held" the trade for 15 seconds, you would make way more pips. This report was amazing and despite of the fact I made decent money I was very pissed off for myself. One of the reasons why I did not trade with confidence was because I traded it from... my classroom at my college. Not the best place to be if you put a lot of money on SNW trade using free wireless internet with a very questionable reliability. One thing for sure, Forex is great and my economics class was paid off that day, even with my early exit.... although my entire semester would be paid off if I had stayed at home and traded it from there... ;-)

    To learn more about SNW, you can go here: The Secret News Weapon

    Well, I am glad we got a few tradable reports recently. I don't mind to convert my Macbook Pro into an ATM machine.... ;-)
    I hope you made some money, I surely did.

    Anyway, let's talk about Thursday.

    1. Thursday, November 6th, 2008 (7:00 a.m. New York Time) UK
    At 7:00 a.m. we will have UK Interest Rate decision. It is expected they will cut the rates from 4.50% to 4.00% but triggers are not so obvious here as you might think they would. Probably +/- 0.25 trigger would be tradable but to give you better picture, you need to know that about 75% of economists expect 0.50 cut whereas about 20% of economists expect 0.75 cut from 4.50% to 3.75%. Therefore, +0.25 trigger is more risky to trade than -0.25 trigger. If they don't cut the rates (+0.50 deviation), it would be a very strong buy signal on GBP/USD. If they cut the rates from 4.50% to 4.25% (+0.25 deviation), because people expected bigger cut, this would also be a buy signal on GBP/USD and it may work pretty well. Probably soon after the spike we will see a retracement so take a profit with 30 seconds or so. If they cut the rates by 0.50 from 4.50% to 4.00% then I would stay away because this is not so clear where the market would go. If they cut the rates by 0.75 to 3.27%(-0.25 deviation), then maybe selling GBP/USD would not be a bad idea but don't go crazy there. It should work but be careful. If they cut by 1% or more to 3.50% or less, then of course it would be a very strong sell signal on GBP/USD.

    2. Thursday, November 6th, 2008 (7:45 a.m. New York Time) EURO ZONE
    Then at 7:45 a.m we will have ECB Interest Rate statement. Nearly all of the economists expect them to cut the rates by 50 bp from 3.75% to 3.25%. Therefore, if they don't cut or cut by 0.25 to 3.50%, it would be a buy signal on EUR/USD; if they cut the rates by 50 bp, (0 deviation) then it would be a no trade. If they cut the rates to 3.00% or less, this would be a very strong sell signal on EUR/USD.

    3. Thursday, November 6th, 2008 (8:30-ish a.m. New York Time) EURO ZONE
    At 8:30-ish a.m. we will have Trichet speech which is expected to be dovish, but is really up to the experts to properly interpret his speech.

    I am sorry I am so late with this signal.

    That would be all for Thursday.

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    To Our Success!
    -Crazy Cat
     
    #1 Crazy Cat, Nov 6, 2008
    Last edited: Nov 6, 2008

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