July 27, 2006
The dollar fell against the major currencies as housing statistics today suggested the U.S. economy is slowing, reducing the likelihood for the Federal Reserve to lift its borrowing cost next month on August 8th.U.S. sales of new homes declined 3 percent to 1.13 million (annually) in June, according to the Commerce Department. New homes represent 15 percent of the housing market. Economists expectations were at 1.15 million. In the chart below the NZD started to decline against the USD as of 13:30 GMT creating a divergence in the overall bearish dollar trend.
Today’s Strategy: BUY NZD/USD @ 0.6196 (a few pips below the 0.61200 phycological level) place a protective STOP at 0.6176 and LIMIT order at 0.6236. Once the trade moves 40 pips in your favor adjust the stop to breakeven @ 0.6196
Source: FXCM Charts
Posted by forexsource under Daily Trading Strategy | Comments (1)
July 25, 2006
The dollar gained the most in more than a week against the euro and yen after a report showed U.S. consumer confidence unexpectedly rose in July, rising the expectations that the Federal Reserve will raise interest rates at least one more time during its August 8th meeting.
Traders were pricing in a nearly 60 percent probability the Fed will raise the overnight rates 25 basis points higher to 5.5 percent at its August 8th meeting, according to federal fund futures contracts. Sterling was down 0.56 percent on the day at $1.8392 at 17:30 GMT. In the 30-min GBP/USD chart below the pound is trading way below the 20 period moving average and has broken the 1.8400 double zero phycological barrier. Stochastics slow is below 20 - in the oversold area.
Today’s Strategy: Buy on bounce from the 1.8400 level: BUY GBP/USD at 1.8394 STOP 1.8374 1st PROFIT TARGET 1.8434, trail stop afterwards.
Posted by forexsource under Daily Trading Strategy | Comments (1)
