Profit Mongers @ 12:34 AM, Tuesday September 28 2010
Hey folks,
EUR/USD saw sideways action today with little for the market to focus on. My short from 1.3470 alternated between profit and loss, but has yet to make a significant break in either direction, but I still remain confident in the trade. See Monday's signal for details.
USD/JPY may be setting up a floor for another rally leg on the 4 hour chart. The odds are not overwhelmingly great, but the positioning has created a great risk/reward ratio. If USD/JPY can complete the bottoming process ahead of 84.00 and start heading higher, the pattern will be ripe for a rally likely targetting at least 86.65. I'm entering long here at 84.20 with a SL just below 84.00. For TP, my final TP is around 86.65, but I'd take partial profits just in case at 60 and/or 140 pips profit.
In news Tuesday, there's 2 reports due out to consider:
0430 UK GDP q/q final (1.2% expected) - Since this is the final revision, it is the least potent of UK GDP releases, and the least likely to give us a surprise. Nevertheless, if it does deviate by 0.2, 0.3, or more, it should give us a solid 40 pip move.
It it comes out at 1.4% or higher, GBP/USD should rally 40 pips.
If it comes out at 1.0% or lower, GBP/USD should drop 40 pips.
1000 US Consumer Confidence (52.5 to 53 expected) - This is another marginally tradable report, but with such a light data week, hopefully it will get a bit more attention from the market than usual. Typically, there's a better reaction in the US stock market than in currencies, but both should see a decent move.
If it comes out at 58.0 or higher, USD/JPY should rally 30-40 pips, and S&P 500 futures should rally 5-10 points.
If it comes out at 47.0 or lower, USD/JPY should drop 30-40 pips and S&P 500 futures should drop 5-10 points.
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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