Forex Trading Signal 07/22/08

Forex Trading Signal 07/22/08 - Today, 03:09 AM
Hi there my Forex friend

Let's review what happened on Friday.

On Friday we had German PPI coming out. It came out higher but not high enough to buy on EUR/USD.

On Sunday we had Australian PPI but I did not trade it at all as all recent Australian PPIs have not been performing well. The deviation was pretty big and AUD/USD spiked down by 24 pips or so and then it reversed.

Let's talk about Tuesday.

1. Tuesday, July 22nd, 2008 (8:30 a.m. New York Time) CANADA
At 8:30 a.m. we will have Canadian Retail Sales. I prefer to trade the headline number. I would like to see 0.5 deviation on the headline number to enter a trade. If it comes out at 1.1% or higher, I would sell USD/CAD and expect 35 pips price action. If it comes out at 0.1% or lower, I would buy USD/CAD and expect 35 pips move as well. You do want to see an agreement with the core PPI and usually they deviate the same direction.

2. Tuesday, July 22th, 2008 (9:30 p.m. New York Time) AUSTRALIA
At 9:30 a.m. we will have Australian CPI. Last month with 0.3 deviation we saw a spike of 20 pips and eventually it moved by another 15 pips in first 30 minutes. If we have higher inflation, this would be a different situation than we would had in the USA or UK. Australian government may actually react with interest rates on the CPI numbers. I would focus on CPI Trimmed Mean q/q which is expect to come out at 1.1% If it comes out at 1.3%, I would buy AUD/USD and look for 30 to 40 pips price action. If it comes out at 0.9% or lower, I would sell AUD/USD and look for 30 to 40 pips price action. If there is a conflict with the other numbers, I would look to exit quickly. Also, watch the outlook video where Sir Pips will go in details with the AUD.

That's all for Tuesday.

Thank you and good luck with your trades.

To Our Success!