Forex Trading Signal 04/22/08

Forex Trading Signal 04/22/08 - Today, 05:58 AM

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Hi there

I hope you had a nice weekend. There was not much going on past 4 days

Today I have text based signal only.

Let's talk about Tuesday then.

1. Tuesday, April 22nd, 2008 (9:00 a.m. New York Time) CANADA
At 9:00 EST we have Bank of Canada Interest Rate decision. Expectations are for a cut of 0.50% from 3.50% to 3.00%; however, there are about 20% of economists thinking they will cut a less agressive 0.25%. I think this gives us a good opportunity for a 2-way trade. If they cut rates by only 0.25%, it will be clearly strengthening for the CAD and would be a great sell signal on the USD/CAD good for about 50 pips. If they cut by 0.50%, while it is expected... there are bound to be some speculators doubting that they'll put out a drastic cut, so it will give us a nominal/weak buying opportunity on USD/CAD that should be good for 40 pips.

Summary:
0.50% cut, Buy USD/CAD looking for 40 pips but be careful
0.25% cut, Clear Sell on USD/CAD looking for 50 pips


2. Tuesday, April 22nd, 2008 (10:00 a.m. New York Time) USA
At 10:00 we have US Existing Home Sales, but I'd leave this one alone.

3. Tuesday, April 22nd, 2008 (9:30 p.m. New York Time) AUSTRALIA
At 21:30 we have Australian Quarterly Trimmed Mean CPI expected at 0.9%. If it comes out at 1.1% or higher, that would be a buy AUD/USD signal, and 0.7% or lower would be a sell signal on AUD/USD - either good for 40 pips or more in the first hour. Try to make sure the other CPI figures come out roughly in the same direction. If there is a strong conflict, either exit quickly or stay out, but keep in mind that the Trimmed Mean and Weighted Median numbers should be the most powerful.

The other numbers are expected as follows:
RBA Trimmed Mean CPI YoY - 3.8%
RBA Weighted Median QoQ - 0.9%
RBA Weighted Median YoY - 4.0%
RBA Headline CPI QoQ - 1.1%
RBA Headline CPI YoY - 4.0%

Good luck trading everyone!