Here is today's trade for Thursday July 8th 2010. This happened about 15 minutes after the release of the UK May Industrial Production numbers, which were mixed. m/m was up +0.3% at +0.7% versus 0.4% expected and y/y was down -0.5% at 2.6% versus 3.1% expected. These deviations are not big enough to base a trade on, plus being mixed was not good, there were also some revisions to previous months. A half hour before there were some negative housing figures from the UK June Halifax House Price Index m/m was -0.6 versus +0.2% expected, with previous months also revised lower. The poor Halifax numbers had reinforced a bearish tone on the pound since the 1.5240 spike high 30 minutes before the London market opened, causing a continuation of the downmove from 1.5180 to 1.5150 in the half hour between the Halifax report release and the Industrial Production numbers. The earlier bearish move was too risky to jump into as price was still in the consolidation range set during the asian session in which a very positive Austrialian Employment report had added to risk appetite and bouyed all the pairs versus the US Dollar. So the rally after the Industrial Production Data was a gift, as it came right up to the 5pm NY close price from yesterday's session, came close to the 40SMA (yellow moving average) which I usually use. It did hit the 55 ema however which does work better in some instances. Also the 50% retracement of yesterday's rally was at this level (red horizontal dotted line), the white dotted horizontal line is 161% fib extension of nov 2009 high 1.6875 to dec 2009 low 1.5825. Exit was right before the BOE Rate decision. Entry 1.5185 Exit 1.5125 for +60 pips
Want to get these trades live?
No comments:
Post a Comment