Forex Trading Signal 05/20/08

Forex Trading Signal 05/20/08 - Today, 04:59 AM
Hi my dear Trader

There was nothing tradable on Monday, and therefore there is nothing to review.

Let's talk about Tuesday.

1. Tuesday, May 20th, 2008 (5:00 a.m. New York Time) GERMANY, EURO ZONE
At 5:00 a.m. we will have German ZEW Economic Sentiment coming out. It has not been deviating greatly recently; however, we saw pretty good price actions. It is expected it will come out at -37. Even 5 trigger moved EUR/USD pretty well; I will, however, use 8 trigger on both directions. If it comes out at -35 or more negative, I would sell EUR/USD, looking for 35 pips. If it comes out at -29 or less negative, I would buy EUR/USD and look for 35 pips as well. In the past it was a small indicator where you would take 15 pips profit at most, but lately it is more and more tradable. Watch out for comments that may be released after the report as they can mute or accelerate the move depending if they are conflicting or supporting the released number.

2. Tuesday, May 20th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. PPI coming out. The PPI out of UK did really well so chances are good this U.S. PPI might be tradable too. I would focus more on the core PPI m/m which is expected to come out at 0.2%. I would play safe here and trade this indicator with a bit wider triggers of 0.2 on either direction. If it comes out at 0.4% or higher, this should be significant enough to short on GBP/USD. If it comes out at 0.0% or negative, you might want to enter long on GBP/USD. In either case, I would look for 30 to 40 pips each way. However, if there are conflicts, do NOT trade with 0.2 trigger on core PPI m/m.

That's all for Tuesday.

Thank you and good luck with your trades.

To Our Success!