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Forex Trading Signal 12/11/07

Discussion in 'Current Forex Trading Signals' started by Felix Homogratus, Dec 11, 2007.

  1. Felix Homogratus

    Felix Homogratus Commander in Chief

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    This is Sir Pips.

    If you wish to watch the video, just click on it. Video version may contain more details.
    http://www.yummyapple.com/12-11-2007.html

    I am Felix's partner, and I trade news on Forexdiamonds room. Felix asked me to write these signals for you, and I am happy to do that.

    Let's first talk about Monday.

    Today we had the UK PPI and US Pending Home Sales. PPI came out a little above expectations but the pound (GBP/USD) actually went down a little bit and traded sideways for about 10 minutes before resuming already established up trend.

    Then we had Home Sales, and it came out above expectations: 0.6% versus -0.1%. We got only 10 pips of price action towards U.S. dollar strength, and then it came back to the pre-release price and continued to trade above that level.

    Let's now talk about Tuesday.

    1. Tuesday, December 11th, 2007 (4:30 a.m. New York Time) UK
    At 4:30 a.m. New York time we will have UK Trade balance coming out. It is expected to came out at -7.4 B versus 7.8 B last month. This indicator has been disappointing with smaller deviations so this indicator will probably need a deviation of 1 B or more. If it comes out at -8.5 B or more negative, it would be a sell signal on GBP/USD, good for 25 to 35 pips or so. On the other hand, if it comes out at -6.4 B or less negative, it should be a positive reaction on the pound, so GBP/USD should go up by 25 to 35 pips or so. It has been a quite shaky indicator recently but with such deviation it should still be tradable.

    SUMMARY:
    * Report: UK Trade Balance
    * Sell on GBP/USD if the number will be -8.5 B or more nagative
    * Buy on GBP/USD if the number will be -6.4 B or less negative
    * If the trigger is hit, expect 25 to 35 pips or more in the first hour of the report

    2. Tuesday, December 11th, 2007 (5:00 a.m. New York Time) EURO ZONE
    At 5:00 a.m. New York time we will have German ZEW economic sentiment. This indicator needs about 15-25 deviation to move enough well. It is expected to come out at -34.5 versus -32.5 last month. If it comes out at -50 or more negative, EUR/USD may go down 20 to 30 pips or more. On the other hand, if it comes out at -20 or less negative, EUR/USD may go up by 20 to 30 pips or so in the first hour of the report.

    SUMMARY:
    * Report: German ZEW
    * Sell on EUR/USD if the number will be -50 or more negative
    * Buy on EUR/USD if the number will be -20 or less negative
    * If the trigger is hit, expect 20 to 30 pips or more in the first hour of the report

    3. Tuesday, December 11th, 2007 (2:15 p.m. New York Time) USA
    At 2.15 p.m. New York time we will have U.S. Interest Rate Statement. It is expected they will cut rates from 4.50% to 4.25%. The futures are pricing in about 20% chance they may cut rates by 50 bp to 4.00%. If they cut the rates to 4.00%, it would be a buy signal on GBP/USD causing some major dollar weakness, and we should see a move of 70 to 100 pips or more. If they keep the rates unchanged at 4.50%, that would be dollar-strengthening, and we should see GBP/USD going down by 70 to 100 pips or more. If they cut the rates to 4.25% then the market reaction is going to be highly dependent on the statement released by Bernanke, and that is subject to a lot of interpretations. They have been pretty hawkish after the last cut but nobody listened to them and GBP/USD gained. That's why it is tough to say how the market is going to react to such comments. Unless you are experienced, I would stay away from it.

    SUMMARY:
    * Report: US Interests Rate Statement
    * Sell on GBP/USD if they keep it unchanged
    * Buy on GBP/USD if they cut the rates to 4.00%
    * NO TRADE if they cut to 4.25%
    * If the trigger is hit, expect 70 to 100 pips or more.

    That's all for tomorrow.

    If news trading seems to be very interesting for you, then I suggest you to go to www.forexdiamonds.com and read everything about this service. It is a live trading service I provide with Felix, and I will be able to show you exactly what I am doing as I am leading hundreds of traders just like you every day with very clear strategies on when to get in and get out. As people are following my trades, they are learning how to trade the news, feel comfortable with trading and make good profits. We offer 21 days free trial so you can just try it and see how you like it.

    Thank you very much, and good luck with your trades.

    To Our Success!
    -Sir Pipsalot
     
  2. Pharaoh

    Pharaoh Colonel

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    Strap yourselves in and hang on tight! Less than 20 minutes until the rate announcement. :eek:oh:

    Personally, I'll be happy for it to be over - I've passed on a number of technical trades on USD pairs since yesterday. :hissyfit:
     

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