09.20.07
Forex Trading Signal (Sept 20th 2007)
Here you can see a couple of things happening on the Forex Market.
1. Thursday, September 20th, 2007 (4:30 a.m. New York Time) UK
At 4.30 a.m. New York time we will have UK Retail Sales coming out. The number that we should focus on will be m/m which is expected to come out at 0% If it comes out at -0.2% or more negative, that would be pretty disappointing as it would be a negative number, and I think GBP/USD may possibly go down by 30 pips or more in the first hour of the report. On the other hand, it the number comes out at 0.3% or better, I think GBP/USD may possibly go up by 30 pips or more in the first hour of the report. If you want to trade this one, just let it spike, and try to enter on the retracement within 10 pips of the pre-release price, and see if you can squeeze out 20 pips profit. You can try to use 15 to 20 pips stop loss depending on your entry. If your TP is not hit, and market starts consolidating within first 15 minutes, I suggest just closing everything 15 minutes after the report, and be completely out whether it is a small profit or small loss.
SUMMARY:
* Report: U.K. Retail Sales m/m
* Sell on GBP/USD if the number will be -0.2% or more negative
* Buy on GBP/USD if the number will be 0.3% or higher
* If the trigger is hit, expect 30 pips or more in the first hour of the report.
2. Thursday, September 20th, 2007 (10:00 a.m. New York Time) USA
Then at 10 a.m. New York time we will Bernanke speaking about housing problems in the U.S. Under normal circumstances, it would be a very interesting speech to trade but since we just got FOMC meeting yesterday, they basically said what they wanted to say, and I am pretty sure Bernanke would say exactly the same things. Trading this would be a waste of time; however, just be aware of volatility at around 10 a.m. New York time.
3. Thursday, September 20th, 2007 (12:00 p.m. New York Time) USA
Then at 12 p.m. New York time we will have Philadelphia Fed manufacturing index coming out. We normally trade this indicator but lately the manufacturing has been extremely secondary, and nobody cares about manufacturing in the U.S. or the UK. Let’s just skip that one also. Right now the housing is most important, and even inflation does not matter that much. I am going to skip that indicator for a while, and maybe come back in 3 to 4 months.
