Profit Mongers – Thursday Trading Signal 06-03-2010

Posted on 03. Jun, 2010 by Sir Pipsalot in Forex Signals, How To, Random Noise

Hey folks,

EUR/USD has floated up into a decent area to sell into (now 1.2290), so I’m in short now with a SL around 1.2260. I’m not positive whether we’ll top out here, or manage another thrust higher before topping, so it may take 2 trades to pull off the swing trade short. Again, I’m targetting the 1.1810-1.1995 area with my final TP, but looking to take appropriate partial profits ahead of time.

Stocks managed that bounce I was looking for and have continued positive momentum after the close as well. Chances are that follow-through Thursday and/or Friday should carry stocks up to our 1110-1120 sell region. SL is up to you and how much you want to hold out for on the trade. You could go as tight as 20-30 points and take quicker profits, or you could trade lower volume with a 50-70 point SL and look for a bigger move, or some combination of the two. Remember, if we break 1035, that will have very long-lasting bearish implications, so a short from here could end up going much further than a typical trade given the right circumstances.

In news Thursday, UK Services PMI already came out, and it was too close to expectations for a trade. In later news:

0815-0830 US ADP Employment Change and US Initial Jobless Claims (70K and 455K expected respectively) – Optimism over the upcoming US jobs data is supposedly fueling the stock rally right now, so there will likely be more attention than usual on this pre-NFP data this week. I would look for a big deviation on either of these to create a 35-50 pip+ move on USD/JPY that may still give you a chance to get in during the first minute… one of those moves that takes 3-10 minutes to flesh out.
–If ADP comes out at 120K or higher, USD/JPY should rally 35-50 pips
–If ADP comes out at 20K or lower, USD/JPY should fall 35-50 pips
–If IJC comes out at 435K or lower, USD/JPY should rally 30-40 pips
–If IJC comes out at 475K or higher, USD/JPY should fall 30-40 pips

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