Forex Trading Signal 07/31/08

31.7.08    

Forex Trading Signal 07/31/08 - Today, 04:10 AM
Hi there my Forex friend

Let's review what happened on Tuesday.

At 8:15 a.m. we had US ADP Employment change. It came out much higher than expected. EUR/USD moved very nicely, moving by over 40 pips total. USD/JPY spiked up by 29 pips and the total move was about 40 pips.

Australian Retail Sales came out much lower than expected: -1.0%. It was a huge deviation but AUD was oversold already so the move was somewhat muted. Nevertheless, if you traded the spike, you should be able to make decent money.

Let's talk about Thursday.

1. Thursday, July 31st, 2008 (2:00 a.m. New York Time) USA
At 2:00 a.m. we will have UK Nationwide House Prices coming out. This has not been performing well lately but with increasing focus on the housing market, we might get some price reaction. It is expected to come out at -1.2% on m/m and 7.3% on y/y. If m/m comes out at -0.7% or less negative, I would buy GBP/USD and we should see 30 pips price action. If it comes out at -1.7% or more negative, I would sell GBP/USD and expect 30 pips move as well. However, be careful on sell signal.

2a. Thursday, July 31st, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. GDP Annualized. It is expected to come out at 2.3% but the estimate range is very wide: 0.9% to 4.2%. If it comes out at 2.7% or higher, I would buy USD/JPY or sell EUR/USD (be careful) and look for 40 pips price action. If it comes out at 1.9% or lower, I would sell USD/JPY or buy EUR/USD and expect 40 pips move as well.

2b. Thursday, July 31st, 2008 (8:30 a.m. New York Time) CANADA
At 8:30 a.m. we will also have Canadian GDP. Recently it was pretty much ignored, and with U.S. GDP it may be ignored this time as well. I will skip it.

3. Thursday, July 31st, 2008 (9:42 a.m. New York Time) USA
At 9:42 a.m. we will have Chicago PMI. If you are not able to get numbers at 9:42 a.m., skip this report. It is expected to come out at 49. If it comes out at 52 or higher, I would buy USD/JPY and expect 30 pips move. If it comes out at 46 or lower, I would sell USD/JPY and expect 30 pips move as well.

That's all for today.

Thank you and good luck with your trades.

To Our Success!