We have a very exciting day lined up for today. There are about at least 7 hot reports rolling out of the various countries today. As always, i will only trade the really good ones and though there is more than 1 today, i will pick the more safer and possibly better trade to cash in on.
Before that, we had absolutely nothing tradeable yesterday. As mentioned, there could have been a speculative buy on AUD/USD for the AU employment change indicator. It came out positive and there was a short spike of about 40 pips. I didn’t trade this, so i hope you made some money on it.
For today, as mentioned, we have 7 reports coming out. My screenshot of Forex Factory reads like this;
I have already highlighted those in yellow that i feel would definitely be worth trading.
As there are a total of 4 reports coming out at the same time at 0830 hrs, there might be conflicting data. This might not make a single number on the US trade balance so simple as other conflicting data might also influence it and this can cause lots of butterfly moves, with no specific direction. Due to the volatility and assumed unpredictability that this brings, i will not be trading on the US Trade balance indicator. Though it is the fattest of the lot, i will still give it a miss.
Therefore, we will be focusing on the Canadian Trade Balance at 0830 hrs, NY Time and 2030 Hrs, SGT time. As this is the only indicator that is coming out of the US with a distinct number report, i will trade it without a US cross pair, hence the EUR/CAD pair. The CAD trade balance measures the difference in value between imported and exported goods and services. We will be looking for a deviation of 0.8-1 on either side to enter the trade conservatively. The consensus on this report is at 3.4. Therefore, anything below 2.6 should be weak for the CAD and i feel that you can long the EUR/CAD pair. Likewise, anything about 4.2 should be strengthening the CAD and i feel that you can go short on the EUR/CAD pair.
This report has been safely tradeable over the last few months and at least produced 15-45 pips range movement. So good luick for this folks.
Take care & God Bless,
Seeni
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