This is Sir Pips.
If you wish
to watch the video, just click on it, and then click on "play" icon. My video
version is MUCH MORE detailed so I encourage you to watch it.
Let's first
review what happened on Tuesday.
On Tuesday we had two reports that were
worthy watching and possibly trading.
At 4:30 a.m. we had UK CPI y/y
headline coming out. It came out 0.1 higher than expected so it did not let us
trade it. Because at the same time the core number was down by 0.1 it was
definitely a no trade. The price went up about 20 pips on the headline number
and then it retraced completely and went the other way because of the core
number. It was a good idea to stay away.
Then we had German ZEW. Nothing
really to take about.
Then we had U.S. Retail Sales X Autos coming out.
We were looking to sell USD/JPY if it came out -0.6 or lower with -0.1
consensus. Although the trigger was not hit, we did get a negative deviation but
I did not think it would be enough to enter the trade. USD/JPY moved about 92
pips in the first hour of the report. However, I personally stayed out as it was
a no trade for me. Well, better safe than sorry, there will be plenty other
opportunities.
Let's talk about Wednesday.
1. Wednesday, January
16th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have the U.K.
Average Earnings + Bonus. I will be trading it with 0.2 trigger. If it comes out
at 4.1 or higher, I would buy GBP/USD. If it comes out at 3.7 or lower, I would
sell GBP/USD. If there is a conflict with unemployment rate, I would stay out of
the trade. Ideally, you want to see unemployment number coming out as expected
or coming the opposite direction than the Average Earnings. Last month we had
0.2 deviation and it moved the market about 30 pips in the first couple of
minutes.
2. Wednesday, January 16th, 2008 (8:30 a.m. New York Time)
USA
Then at 8:30 we will have U.S. Core CPI coming out. I would trade this on
EUR/USD. We did not have a lot of deviations on the core CPI but if we get a
deviation, I believe the EUR/USD will perform best. Stay away from USD/JPY on
this report as it is a quite unpredictable pair on this report. On 0.1 trigger
expect about 40 pips price action. If the Core CPI (also known as CPI X Food and
Energy) comes out at 0.3% or higher, it would be good for the dollar so I would
sell EUR/USD. If it comes out at 0.1 or lower, it is going to be bad for the
dollar, and I would buy EUR/USD. As always, keep an eye on y/y and headline
numbers. Sometimes when the core number is flat but headline gives a big
deviation, you may see a nice move. Also, if you see conflicts, you may want to
exit early although the core should be able to take over the headline
number.
3. Wednesday, January 16th, 2008 (9:00 a.m. New York Time)
USA
At 9:00 a.m. we will have U.S. TIC Index coming out. If it comes out at
20 or lower, I would sell USD/JPY. If it comes out at 120 or higher, I would buy
the USD/JPY. This indicator can be traded only if there is a big surprise. If
the trigger is hit, expect about 30 pips move.
4. Wednesday, January
16th, 2008 (9:15 a.m. New York Time) USA
Then at 9:15 a.m. we will have U.S.
Industrial Production. This is not a big deal although sometimes you can scalp a
few pips. Don't worry about this one too much.
5. Wednesday, January
16th, 2008 (4:45 p.m. New York Time) NEW ZEALAND
Then we will have New
Zealand CPI quarterly release. It is expected to come out at 1%. With this
indicator you can use 0.2 trigger. If it comes out at 1.2% or higher, it would
be strong for the New Zealand dollar and you want to buy NZD/USD, looking for 40
to 50 pips or more in the first hour. If it comes out at 0.8% or lower, that
would be weak for the New Zealand dollar and you may want to sell NZD/USD and
expect 40 to 50 pips or more in the first hour of the report.
6.
Wednesday, January 16th, 2008 (7:30 p.m. New York Time) AUSTRALIA
Then we
will have Australian Employment Change. It is expected to come out at 20K. You
can use 15K trigger on this report. If it comes out at 35K or higher, I would
buy AUD/USD, looking for 30 pips or more. If it comes out at 5K or lower, I
would sell AUD/USD, looking for 30 pips or more in the first hour of the
report.
That's all for Wednesday.
If news trading seems to be very
interesting for you, then I suggest you to go to
Forex Diamonds - News Trading
Education and read everything about this service. It is a live trading
service I provide with Felix, and I will be able to show you exactly what I am
doing as I am leading hundreds of traders just like you every day with very
clear strategies on when to get in and get out. As people are following my
trades, they are learning how to trade the news, feel comfortable with trading
and make good profits. We offer 21 days free trial so you can just try it and
see how you like it.
Thank you very much, and good luck with your
trades.
To Our Success!
-Sir Pipsalot
The video with
the signal is recorded by Sir Pipsalot.
For your convenience, this text is
written based on the video by Crazy Cat