Profit Mongers @ 7:56 PM, Wednesday March 03 2010
Hey folks,
As I mentioned yesterday, the EUR/USD was very likely to break out of its conolidation range to the upside which it has. It should now exhibit some form of continuation upwards to near the 1.3800 level (1.3695 currently). Similar upside should be seen on GBP/USD and AUD/USD of 100+ pips higher over the next day or so. It seems like all of my calls have been right for about 5-8 days in a row though, so keep in mind I'll eventually be wrong here and don't chase it recklessly. As always, getting in long on a dip is much more prudent than chasing price action up.
Same story I've been pitching on stocks for a few days now. We should see a strong turn south, but I'm not sure precisely when or from where, so I'm waiting for some confirmation before making more specific calls here.
In news Wednesday, we saw UK Services PMI come in VERY strong and led to 50 pips up in 3 minutes, and over 100 pips total over the next 7 hours. As I said yesterday, a VERY strong number should create a trend good for 100+ pips from prerelease and we got just that. US news was very close to expected and offered no trading opportunities. In news Thursday:
0700 & 0745 - BoE and ECB interest rate statements - No changes are expected on either report, but the statements will definitely drive price action. Instead of breaking it down myself, here is a very well written article that goes into a lot of detail that I feels explains it all as well or better than I could here:
http://www.nasdaq.com/newscontent/20100303/ecb-and-boe-rate-decisions-scenario-analysis-.aspx?storyid=20100303_2928_fx360
1000 CAD Ivey PMI - (56.0 expected) - This news item usually creates a very easy to trade fairly slow move where you can usually get in within 15 pips of prerelease in the first minute and sometimes even much closer. Typically it will start a gradual move good for 40 pips or so over 10-30 minutes.
If it comes out at 60 or higher, USD/CAD should fall 40 pips
If it comes out at 52 or lower, USD/CAD should rally 40 pips
That's all for today's update. If you'd like to learn more about trading or trade along with myself and my collegues, come join us at Profit Mongers. Our subscription is very reasonable at $179 per month, and right now you can sign up for a 2 week trial to get started for only $29. This offer is for new customers only. Feel free to email me with any questions at sirpipsalot@profitmongers.com
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Sir Pipsalot
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