http://www.yummyapple.com/03-26-2008.html

Let's review Tuesday first.

We just had one report coming out and that was Canadian Retail Sales. We were focused on the headline number which deviated by 0.1. Since we were looking for 0.6 deviation, it was a no trade. The core retail sales had a huge deviation, causing some price action but this move retraced very fast. Overall the price moved about 40 pips but it would be tough to make any money on it. Watch the video for more details.

Let's talk about Wednesday.

1. Wednesday, March 26th, 2008 (5:00 a.m. New York Time) GERMANY, EURO ZONE
At 5 a.m. we will have German IFO coming out. If I traded it, I would focus on the business climate index. It is expected to come out at 103.5. I don't recommend to trade this one; however, if you really want to trade it, you can try to use 1.5 trigger on this. If it comes out at 105.0 or higher, you should see some buying pressure on the EUR/USD. If it comes out at 102 or lower, you should see some selling pressure on EUR/USD.

2. Wednesday, March 26th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m. we will have U.S. Durable Goods Core coming out (also known as X Transportation). The Core number is expected to come out at -0.3%, and I would recommend to use a trigger of 2.0 - it should be a nice, solid trigger. If it comes out at 1.7% or higher, I would buy USD/JPY and look for 35 pips of a price action. If it comes out at -2.3% or lower (more negative), that would be a pretty bad number, and I would sell USD/JPY and look for 35 pips as well. Ideally, you want to see both, the core and headline, deviating in the same direction. Also, like on the recent Canadian report, if one of them is barely deviating, you can place a trade but consider getting out pretty quickly.

3. Wednesday, March 26th, 2008 (10:00 a.m. New York Time) USA
At 10:00 a.m. we will have New Home Sales coming out. It is expected to come out at 578 K. I would be a little bit more aggressive on the buy side here. If it comes out at 625 K or higher, that would be worth buying the USD/JPY, looking for about 40 pips of a price action. If it comes out at 500 K or lower, that should be disappointing enough to sell USD/JPY and look for 40 pips of a price action as well.

That's all for tomorrow. As always, watch the video for additional details.

Thank you and good luck with your trades.

To Our Success!
-Sir Pipsalot