Profit Mongers @ 12:55 AM, Tuesday October 12 2010
Hey folks,
Not a lot of price action Monday as there was a market holiday in the US. The action should start heating up today though. If EUR/GBP trades lower through 0.8690-0.8710, and/or EUR/USD works lower through 1.3800-1.3833, that should set us up for a multi-day if not multi-week decline on EUR/USD.
Also, USD/JPY has been attempting to set a base here for a rally off the 82.00 region. After a blowoff dip to start the week taking out some SL's, USD/JPY seems well supported here. I would consider a long here (now 81.86) with a 20-30 pip SL with TP's around 82.20, and 82.90.
There was no real news Monday, but there is one report of interest Tuesday:
0430 UK CPI headline y/y (3.1% expected) - This news should be good for a quick 1-2 minute 40-50 pip reaction, but continuation and retracement trades are a bit of a gamble. About half the time, after the initial news reaction, the momentum will shift and we'll see a complete reversal. Other times, it will behave more like typical news and trade well off of a 38-61% retracement. Look for technical signs of being overbought/oversold heading into the news, and trading near key support/resistance after the news to help determine whether a trade banking on reversal, or on retracement seems more appropriate.
If it comes out at 3.3% or higher, GBP/USD should rally 40-50 pips.
If it comes out at 2.9% or lower, GBP/USD should drop 40-50 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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