http://www.yummyapple.com/02-27-2008.html

Let's talk about Tuesday. The PPI came out higher but it could not go against the strong trend we had. The price moved only by 16 pips on GBP/USD. If you were lucky, you were able to manage to get out at BE but most likely it was a small loss.

At 9:00 a.m. we had a similar situation but on USD/JPY. Because expectations were so low even when it came out better than expected, it was still very low, and this probably caused USD/JPY moving down. It just moved a few pips in the right direction and then eventually made new lows. Well, we did our best here, you cannot be right all the time.

Let's talk about Wednesday.

1. Wednesday, February 27th, 2008 (4:30 a.m. New York Time) UK
At 4:30 a.m. we will have UK GDP q/q coming out. I am going to use 0.1 trigger on this. On the retracement, I would enter pretty close to the pre-release price. If it comes out at 0.7% or higher, you can buy GBP/USD or GBP/JPY; if it comes out at 0.5% or lower, you can sell GBP/USD or GBP/JPY. Either way, expect about 40 pips on GBP/USD and about 60 pips on GBP/JPY.

2. Wednesday, February 27th, 2008 (8:30 a.m. New York Time) USA
At 8:30 a.m we will have U.S. Core Durable Goods. It was kind of cold indicator recently but I think it may start moving the market. I would trade about 1.5 deviation on it. It is expected to come out at -1.4%. If it comes out at 0.1% or higher, I would buy USD/JPY. If it comes out at -3.0% or more negative, I would sell USD/JPY. If the trigger is hit, I would expect 25 to 30 pips of a price action on the USD/JPY. It will also depend on the trend right before the report.

3. Wednesday, February 27th, 2008 (10:00 a.m. New York Time) USA
At 10:00 a.m. we will have U.S. New Home Sales coming out. It is expected to come out at 600K. Be careful on USD/JPY on this (watch the video for more details). I think 50K trigger either direction should be sufficient on this. If it comes out at 650K or higher, I would buy USD/JPY and I would expect 30 to 40 pips price movement. If it comes out at 550K or lower, that would be a sell signal on USD/JPY and I would look for 25 to 30 pips of a price action.

That's all for tomorrow. As always, you can watch more detailed signal by clicking on the video link.

Thank you and good luck with your trades.

To Our Success!
-Sir Pipsalot