Usually, I don't like to put trades on before big news reports (actually we recommend against it), but I've been watching what happens on those days and it's pretty interesting. Basically, this is a pivot point play. Pivot points work really well. They're like magic almost... okay not really. I've seen them stop currency pairs in their tracks, and on big news days I've seen them get blown through. Who knows what the Trade Balance report will hold for us tomorrow, but I think this is a safe way to try out my theory on pivot points.
I've set entry orders in for both long and short plays. My profit targets are the R3 line on the long play, and the S3 line on the short play. My stop loss is 20 - 30 pips. Generally, my stops are set so that I do not risk more than 3% of my account. That's good risk/money management that we all should practice. So, let's stay tuned for the report tomorrow at 8:30 am EST and see what happens!
Related Posts:
- Pick of the Day: NZD/USD 20:16 23 February 2006
- Pick of the Day: EUR/JPY 23:34 30 January 2006
- Pick of the Day: NZD/USD 21:02 06 March 2006
- Pick of the Day: AUD/USD 23:19 23 January 2006
- Pick of the Day: USD/CHF 22:23 22 February 2006
