TRADE CALL RECAP
For our last live trade call, we were watching the UK CPI report this morning. We were looking to buy the GBPUSD if the number came out at least 0.2% better than expected. The actual number came out only 0.1% better than expected so it did not meet our safe trigger.
OUR NEXT LIVE ON THE NEWS TRADE CALLS
Tomorrow we will have two opportunities for a trade when the Canadian and US CPI reports are released. Our first opportunity comes when the Canadian CPI report is released at 7:00 am EST. There are several components to this release, and we will be focusing on the CAD CPI Excluding Core 8 (YoY) figure. The expectation for this report is 1.7%. We will be looking for a deviation of 0.2% to trigger a safe trade. A lower than expected number will trigger a buy on the USDCAD and EURCAD.
The USDCAD and even the EURCAD seem to be trading in a channel recently, and they are both currently near the bottom of the channel. Our focus on this particular release will be biased for a buy on the USDCAD and even the EURCAD, but we could see a 15-30 pip spike either way if it meets our safe trigger. We will use caution on this particular release as it has gone the wrong direction a few times recently. We may even decide to raise our safe trigger to 0.3%.
This report last met our safe trigger in June, and the USDCAD only dropped about 10-15 and stalled so we recommended closing the trade with small profits. We had traders report profits of 5-10 pips on this particular trade. The chart below shows how the USDCAD reacted at the time of June’s release:
We do not have a video of June’s release, so to see a video of December’s trade click on the link below:
http://www.forextradersdaily.com/vid/CADCPI121908/
Our second opportunity to trade tomorrow comes when the US CPI report is released at 8:30 am EST. We will be focusing on the US CPI Excluding Food & Energy figure. The expectation for this report is 0.1%. We will be looking for a deviation of at least 0.1% on this report to trigger a safe trade.
We are going to focus on the EURJPY for this trade tomorrow as the GBPUSD has gone the wrong way lately. We will most likely prefer to see a buy trigger on this as a buy trigger should have a big impact on the stock market, but we could see a good spike of 20-25 pips either way. We will use some caution as there is some additional US data coming out at the same time as this release.
This report last met our safe trigger last month and we had traders report profits of up to 30 pips on the EURJPY. The movement of the EURJPY around the time of last month’s release is below:
The video of last month’s trade is below:
httpv://www.youtube.com/watch?v=MM2-F8g0Nng
This is our current outlook for these trades; however, it is subject to change as market conditions may change by tomorrow. Be sure to log in to the Live Trade Room 15 minutes prior to the releases to get my commentary on these potential trades. Good Luck!!!!
HOW TO TRADE THE FREE CALLS
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http://www.forextradersdaily.com/signals.htm
for important information on how to use my calls.
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Then visit: http://www.forextradersdaily.com/forex2.php
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