Forex Trading Signal 12/04/08

Crazy Cat

Former FPA Special Consultant
Hi there my Forex friend :)

Here is Sir Pip's video:

Let's first review what happened on Wednesday.

At UK at 4:30 a.m. and US report at 8:15 a.m. came out lower than expected, not low enough to enter a trade. At 10:00 a.m. we had U.S. ISM Non-Manufacturing which came out much lower than expected. I actually managed to make a few pips on spike trading although the price action on USD/JPY was kind of disappointing. NZ Interest Rate come out as expected so it was a no trade.

Although the ISM report ended up with a loss for most Diamonds members, Sir Pips gave also two excellent trades in the Diamonds room, one on EUR/JPY and one on NZD/USD so overall it was a good day.

Let's talk Thursday - very simple day.

1. Thursday, December 4th, 2008 (7:00 a.m. New York Time) UK
At 7:00 a.m. we will have UK Interest Rate statement. It is expected they will cut the rates by 100 bp from 3.00% to 2.00%. If they cut the rates to 2.00%, then initially the price action will be unpredictable but the resulting pressure should be higher on GBP/USD. If you can buy at the dip, buy it but probably it will be around pre-release price for a while so there will be plenty of time to set up a good trade. If they cut to 2.25% or 2.50%, GBP/USD may spike up but then it should reverse as this would be disappointing the market. It is tricky to trade but there is a way to make good money.

2. Thursday, December 4th, 2008 (7:45 a.m. New York Time) EURO ZONE
At 7:45 a.m. we will have Interest Rate statement out of Euro Zone. Everyone is expecting at least 50 bp cut but some people are expecting bigger cut than 0.50% from 3.25% to 2.75%. If they cut to 2.75% or to 3.00%, the initial reaction might be funny but overall move should be Euro-negative. If they cut by more than expected, the market may take it as a very responsive move at after the initial price action it might be Euro-positive event.

That would be all for Thursday.

Last chance to try the Diamonds for $27.00 for 2 weeks. We will soon raise prices again.

In case you don't know, Sir Pips has a live trading room, in which he trades these news reports. There, he shares his trades in real time, including exact entries and exits, and detailed explanation for every entry and exit. The service costs $299 per month, but we have a 14-days $27.00 trial. Go to Forex Diamonds and take advantage of this offer. This offer is for NEW customers only.

To Our Success!
-Crazy Cat && Sir Pip