Profit Mongers – Tuesday Trading Signal 07-20-2010

Posted on 20. Jul, 2010 by Sir Pipsalot in Forex Signals, How To, Random Noise

Hey folks,

Well, my EUR/USD short idea from yesterday hasn’t panned out well and we’re still stuck up in this 1.2850 to 1.3000 range. Most experts I closely follow agree the Euro is near a significant multiweek high, but trying to pick the spot has proven a bit troublesome. I’m back to neutral on EUR/USD for the time being.

USD/JPY consolidated Monday but still looks like a good hold for a short, expecially if stocks continue lower.

Even if we’re working into a more substantial rally phase on stocks, we should at least get a bit more follow through lower into the 1040-1051 range on S&P 500 futures. It’s still my view however that 1100 was more likely a lasting high that will see a selloff somewhere in the ballpark of 890-950. I’d like to make money either way though on my short from 1090, so I’ve taken some profits at 1070 and plan to take more profits in the 1040′s.

In news Tuesday, we have 1 report to look forward to:

0900 CAD Interest Rates (0.25% hike to 0.75% unanimously expected) – This report should lead to some very interesting price action. If they hike as expected, the trade could prove to be a bit subjective leaning on the weighting of the statement, but if they hold rates steady, it should be clear, easy and momentous. Investors are pricing in a 96% chance the BOC will follow June’s initial rate hike with another.
–If they keep rates on hold at 0.50%, USD/CAD should rally 50-100 pips.
–If they hike to 1.00% (more than expected), USD/CAD should drop 50-100 pips.
–If they hike to 0.75% as expected, but offer a much more dovish/neutral outlook, USD/CAD will see some volatility that should give way to a 50 pip rally.
–If they hike to 0.75% as expected, and strongly support their hike with hawkish rhetoric, USD/CAD should see a 40-50 pip selloff.

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Related posts:

1. Profit Mongers – Tuesday Trading Signal 09-07-2010
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3. Profit Mongers – Tuesday Trading Signal 10-19-2010
4. Profit Mongers – Tuesday Trading Signal 09-14-2010
5. Profit Mongers – Tuesday Trading Signal 06-01-2010

Tags: Daily forex outlook, forex signal, forex trading, Profit Mongers, ProfitMongers, Sir Pipsalot, Trading Forex