Close Trade: 2008-02-12 23:24
Total: +10 pips/ +.14%
Stay tuned for a new trade idea tonight. See ya!
Trade Update: 2008-02-12 11:56
Our short trade was triggered late in the Euro/US trading session overlap as we saw a broad US Dollar selloff. UK CPI came out slightly weaker than expected with the headline number read at 2.2% vs. 2.3% forecasted. Cable spiked lower before finding support at 1.9450 and rallying up to our short order just below 1.9600.
The pair found temporary resistance at 1.9600, but is now currently holding above that level. I will continue to hold this position until the end of the US trading session to see if we can grab an end of day reversal. Stay tuned and good luck!
Trade Idea: 2008-02-11 23:59
The big economic event for the European trading session is the UK CPI data. The markets are speculating a stronger number with a forecast of about 2.3% versus the previous read at 2.1%. We may see Cable rally if we do see a stronger number, but I think sellers are waiting patiently to jump back into the downtrend.
The counter trend rally was a bit weak showing the lack of conviction in the buyers, so I am pretty confident we will see sellers jump in if the pair spikes higher. I look to step in front of the 1.96 handle as I look to fade any strong moves higher on news.
Good luck and good trading!