FX Trading Signal for 2nd Jan 08

Joined : 23 Dec 2007 Posts : 217 Location : Nigeria

Let's first review what happened on December 31st, 2007.

We had U.S. Existing Home Sales. It was expected to come out at 4.97M but originally when I recorded my signal, it was 5.00M so we were looking at 5.2 M to get into the trade. This trigger was not hit so that was a no trade.

Tomorrow we will have 3 indicators that are worthy watching and possibly trading.

1. Wednesday, January 2nd, 2008 (4:30 a.m. New York Time) UK
First one is UK Manufacturing PMI at 4:30 a.m. New York time. This indicator had gone a little cold towards the end of the year but last month it had a good price action. The deviation was 1.9 (if I remember correctly) and it moved GBP/USD by about 60 pips. Tomorrow it is expected to come out at 53.9. If it comes out at 55 or higher, I would like to buy GBP/USD or GBP/JPY, expecting about 35 and 50 pips or more, respectively. On the other hand, if it comes out at 52.5 or lower, I would like to sell GBP/USD or GBP/JPY, expecting 35 and 50 pips, respectively.

2. Wednesday, January 2nd, 2008 (10:00 a.m. New York Time) USA
At 10:00 a.m. we will have U.S. ISM Manufacturing. It is expected to come out at 50.5. On this indicator I would like to use 1.2 deviation so if it comes out at 51.7 or higher, I would look to sell either EUR/USD or GBP/USD. If it comes out at 49.3 or lower, I would look to buy EUR/USD or GBP/USD. I would expect 30 pips price action on EUR/USD and 40 pips price action on GBP/USD if the trigger is hit. You can also trade USD/CHF (reverse triggers) but I would stay away from USD/JPY as this one behaves kind of weird with this report. Sometimes USD/JPY moves like crazy, some other times it does not move at all on this indicator.

3. Wednesday, January 2nd, 2008 (2:00 p.m. New York Time) USA
At 2:00 p.m. we will have U.S. FOMC Meeting Minutes. On Dec 12th, they voted for a 0.25 cut on U.S. interest rates one of the voters voted for 0.50 cut. If you are interested in trading this report, please watch the video.

That would be all for Wednesday.

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

To Our Success!
-Sir Pipsalot