Forex Trading Signal 27 Agustus 2008

[Rayback]

Let's review what happened on Tuesday.

 

At 2:00 a.m. we had German GDP which came out as expected. No price action here.

 

At 4:00 a.m. we had German IFO. We had a very large deviation + negative commentary for the Euro. Unfortunately, in cases like this we don't see retracements and the price just go and go, and unless you were able to enter with the SNW (and I was able in one of my accounts), you could just see the price going down and that's pretty much all. If you made any money without SNW, congratulations.

 

At 10:00 a.m. we had a conflict between New Home Sales and Consumer Confidence although none of them hit my trigger. No trade here. However, the Consumer Confidence deviated quite well so we saw a pretty nice move although I would be afraid to trade it. Better safe than sorry.

 

Let's talk about Wednesday.

 

1. Wednesday, August 27th, 2008 (8:30 a.m. New York Time) USA

At 8:30 a.m. we will have U.S. Durable Goods. Last month we had a pretty good price action on USD/JPY but nothing impressive on EUR/USD or GDP/USD so I still don't trust this report enough to put any real money on it. Even with that great deviation we had last month, usually half of the time it works great and the other half of the time not so great. If the price is just about to go one or the other way and this report deviates same way, market can use it as an excuse to jump into a trade. This, however, would require you to do some analysis right before the report because as of right now I am not able to tell you which way the price wants to go. The London session may and probably will move currencies one or the other way so most likely the price will be at the other level right before the report. If you are new, skip it. Remember, you don't have to follow what we write here so if you want to trade it, go ahead. I will not be trading it.

 

That would be all for Wednesday.