Forex Trading Signal 07/25/08

Forex Trading Signal 07/25/08 - Today, 05:48 AM
Hi there my Forex friend

Let's talk about Thursday.

We had German IFO which came out much lower than expected. EUR/USD dropped by 35 pips and the total drop was about 50 pips.

Then we had UK Retail Sales which came out much lower than expected as well although we did not see as much move as I expected. It spiked down by 45 pips, however. I think this report was leaked and 30 minutes before the report we saw GBP/USD going down like crazy.

U.S. Existing Home Sales came out much lower than expected. USD/JPY moved down by about 40 pips which is not bad at all.

Let's talk about Friday.

1. Friday, July 25th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK GDP q/q coming out which is expected to come out at 0.2%. This is what they call "advanced" number, and any deviation on the "advanced" number may move the market well. If it comes out at 0.1% or lower, I would sell GBP/USD and expect 40 pips price action. If it comes out at 0.3% or higher, I would buy GBP/USD and expect 40 pips move as well.

2. Friday, July 25th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. Durable Goods. Skip this.

3. Friday, July 25th, 2008 (9:55 a.m. New York Time) USA
At 9:55 a.m. we will have U.S. Consumer Sentiment, and this is a final revision so this should not move the market at all. Skip it.

4. Friday, July 25th, 2008 (10:00 a.m. New York Time) USA
At 10:00 a.m. we will have New Home Sales coming out. I would look to trade it with 20 to 30K trigger. If it comes out at 479K or lower, I would sell USD/JPY. If it comes out at 531K or higher, I would buy USD/JPY. In either case, I would expect 30 to 35 pips price action.

That's all for this week.

Thank you and good luck with your trades.

To Our Success!