Trading the News: European Central Bank Interest Rate Decision(based on dailyfx.com article)
European Central Bank (ECB) to Keep Rate at 0.50%; Forward-Guidance in Focus
President Mario Draghi to Sounds More Dovish; Which Non-Standard Measure is Next?
The European Central Bank (ECB) is widely expected to adopt a more
dovish tone for monetary policy as the Governing Council remains poised
to implement more non-standard measures in 2014.
What’s Expected: Time of release: 12/05/2013 12:45 GMT, 7:45 EST Primary Pair Impact: EURUSD Expected: 0.25% Previous: 0.25% Forecast: 0.25%
Why Is This Event Important:
Given the recent headlines surrounding the ECB, there may be little in
terms of new surprises as the Governing Council looks at a range of
policy tools (Negative Deposit Rates, Long-Term Refinancing Operations,
and Quantitative Easing), but the Euro may struggle to hold its ground
following the policy meeting should President Mario Draghi layout a more
detailed schedule for its easing cycle.
Bearish EUR Trade: ECB Lays Out Detailed Easing Schedule
Need to see red, five-minute candle following the decision/statement to consider a short Euro trade
If market reaction favors a short trade, sell EURUSD with two separate position
Set stop at the near-by swing high/reasonable distance from cost; at least 1:1 risk-to-reward
Move stop to entry on remaining position once initial target is met, set reasonable limit
Bullish EUR Trade: Governing Council Adopts More Neutral Tone
Need green, five-minute candle to favor a long EURUSD trade
Implement same strategy as the bearish euro trade, just in the opposite direction
Potential Price Targets For The Rate Decision
Continues to Threaten Trendline Support; Head-and-Shoulders Formation?
Bearish Break in Relative Strength Index to Provide Confirmation/Conviction
Interim Resistance: 1.3650-60 (78.6% expansion)
Interim Support: 1.3290 (50.% retracement) to 1.3300 Pivot
The European Central Bank (ECB) meeting may threaten the bullish trend in the EURUSD should President Mario Draghi layout a more detailed timeline for its easing cycle.
The Bank of England left
its key policy rates unchanged on Thursday, while Chancellor of
Exchequer George Osborne said in his autumn statement that the economy is better placed than they had expected early this year.
In
his 2013 Autumn Statement, Osborne said Britain's economic plan is
working and the hard work of the British people is paying off. The
economic growth forecast for 2013 was more than doubled to 1.4 percent
from 0.6 percent, he told lawmakers.
According to estimates by
the Office for Budget Responsibility, the economy will grow 2.4 percent
next year, up from the 1.8 percent projected in March.
The Trading System Development Step-By-Step Process(based on thetechnicaltraders article)
Having A Master Plan
Trading As Your Business.
Don’t Get Distracted, Have Laser Beam Focus
There Is No Get Rich Quick Trading System – Not many…
Money Management – Manage it or Lose
Don’t Wait Until It’s Perfect (Perfection does not exist with any trading system. The financial markets
are always evolving and you will have losing streaks and winning
streaks. Just make sure the system is working correctly).
Do Not Ever Fool Yourself – Fudging the Numbers is a NO NO (Do not attempt to fudge numbers while testing your trading system. Be
honest in your backtesting reports and manually review all backtested
trades for completeness and accuracy).
When it comes to becoming a successful investor or your, automated trading system development process for that matter, there are some big picture things that you must have figured out. Here are some tips that will help you get started in becoming a long term consistent and profitable trader, investor or automated trading system developer. Having A…
Trading the News: U.S. Non-Farm Payrolls(based on dailyfx article)
U.S. Non-Farm Payrolls to Climb 185K, Unemployment Rate to Narrow to 7.2%
NFP(OCT) Topped Market Forecast for the First Time in the Last Four Prints
The U.S. economy is expected to add another 185K jobs in November and a
positive development may highlight a bullish outlook for the dollar as
it raises the Fed’s scope to taper the asset-purchase program at the
December 17-18 meeting.
What’s Expected:
Time of release: 12/06/2013 13:30 GMT, 8:30 EST Primary Pair Impact: EURUSD Expected: 185K Previous: 204K Forecast: 160K to 200K
Why Is This Event Important:
A further improvement in the U.S. labor market may spark a more material
shift in the policy outlook as the Fed retains its forward-guidance for
monetary policy, and we may see a growing number of central bank
officials show a greater willingness to move away from the easing cycle.
How To Trade This Event Risk
Bullish USD Trade: NFP Increases 185K+; Unemployment Slips to 7.2%
Need to see red, five-minute candle following the print to consider a short trade on EURUSD
If market reaction favors a long dollar trade, sell EURUSD with two separate position
Set stop at the near-by swing high/reasonable distance from entry; look for at least 1:1 risk-to-reward
Move stop to entry on remaining position once initial target is hit; set reasonable limit
Bearish USD Trade: November Job Growth Disappoints
Need green, five-minute candle to favor a long EURUSD trade
Implement same setup as the bullish dollar trade, just in the opposite direction
The U.S. Non-Farm Payrolls (NFP) report may spur a bullish outlook for the dollar should the data raise the Fed’s scope to taper its asset-purchase program in December.
In another upbeat sign for the U.S. labor market, the Labor
Department released a report on Friday showing stronger than expected
job growth in the month of November.
The report showed that
non-farm payroll employment rose by 203,000 jobs in November following a
revised increase of 200,000 jobs in October.
Economists had been
expecting employment to increase by about 180,000 jobs compared to the
addition of 204,000 jobs originally reported for the previous month
The People’s Bank of China has barred financial institutions in the country from taking part in Bitcoin transactions, causing the exchange rate to plunge as Chinese demand is perceived to be the driving force behind the recent skyrocketing rates. Bitcoin isn’t a currency with “real meaning” and doesn’t have the same legal status as a currency...
Today, Bank of America became the first major finical institution to initiate analyst coverage of Bitcoin.
But Bitcoin is highly volatile. Thursday alone it hit a high of $1,240
before tumbling down to $870 on news that the Chinese government has
restricted banks from using it. The value is back up to around $1,100
since that early morning low.
Trading the News: European Central Bank Interest Rate Decision (based on dailyfx.com article)
The European Central Bank (ECB) is widely expected to adopt a more dovish tone for monetary policy as the Governing Council remains poised to implement more non-standard measures in 2014.
What’s Expected:
Time of release: 12/05/2013 12:45 GMT, 7:45 EST
Primary Pair Impact: EURUSD
Expected: 0.25%
Previous: 0.25%
Forecast: 0.25%
Why Is This Event Important:
Given the recent headlines surrounding the ECB, there may be little in terms of new surprises as the Governing Council looks at a range of policy tools (Negative Deposit Rates, Long-Term Refinancing Operations, and Quantitative Easing), but the Euro may struggle to hold its ground following the policy meeting should President Mario Draghi layout a more detailed schedule for its easing cycle.
Bearish EUR Trade: ECB Lays Out Detailed Easing Schedule
- Need to see red, five-minute candle following the decision/statement to consider a short Euro trade
- If market reaction favors a short trade, sell EURUSD with two separate position
- Set stop at the near-by swing high/reasonable distance from cost; at least 1:1 risk-to-reward
- Move stop to entry on remaining position once initial target is met, set reasonable limit
Bullish EUR Trade: Governing Council Adopts More Neutral TonePotential Price Targets For The Rate Decision
2013-12-05 12:00 GMT (or 13:00 MQ MT5 time) | [GBP - Interest Rate]
if actual > forecast = good for currency (for GBP in our case)
==========
BoE Leaves Rates Unchanged; Osborne Upgrades GDP Outlook
The Bank of England left its key policy rates unchanged on Thursday, while Chancellor of Exchequer George Osborne said in his autumn statement that the economy is better placed than they had expected early this year.
In his 2013 Autumn Statement, Osborne said Britain's economic plan is working and the hard work of the British people is paying off. The economic growth forecast for 2013 was more than doubled to 1.4 percent from 0.6 percent, he told lawmakers.
According to estimates by the Office for Budget Responsibility, the economy will grow 2.4 percent next year, up from the 1.8 percent projected in March.
The Trading System Development Step-By-Step Process (based on thetechnicaltraders article)
Trading the News: U.S. Non-Farm Payrolls (based on dailyfx article)
The U.S. economy is expected to add another 185K jobs in November and a positive development may highlight a bullish outlook for the dollar as it raises the Fed’s scope to taper the asset-purchase program at the December 17-18 meeting.
What’s Expected:
Time of release: 12/06/2013 13:30 GMT, 8:30 EST
Primary Pair Impact: EURUSD
Expected: 185K
Previous: 204K
Forecast: 160K to 200K
Why Is This Event Important:
A further improvement in the U.S. labor market may spark a more material shift in the policy outlook as the Fed retains its forward-guidance for monetary policy, and we may see a growing number of central bank officials show a greater willingness to move away from the easing cycle.

How To Trade This Event Risk
Bullish USD Trade: NFP Increases 185K+; Unemployment Slips to 7.2%
- Need to see red, five-minute candle following the print to consider a short trade on EURUSD
- If market reaction favors a long dollar trade, sell EURUSD with two separate position
- Set stop at the near-by swing high/reasonable distance from entry; look for at least 1:1 risk-to-reward
- Move stop to entry on remaining position once initial target is hit; set reasonable limit
Bearish USD Trade: November Job Growth Disappoints2013-12-06 13:30 GMT (or 14:30 MQ MT5 time) | [USD - Non-Farm Employment Change]
if actual > forecast = good for currency (for USD in our case)
==========
U.S. Employment Increases By More Than Expected In November
In another upbeat sign for the U.S. labor market, the Labor Department released a report on Friday showing stronger than expected job growth in the month of November.
The report showed that non-farm payroll employment rose by 203,000 jobs in November following a revised increase of 200,000 jobs in October.
Economists had been expecting employment to increase by about 180,000 jobs compared to the addition of 204,000 jobs originally reported for the previous monthGold at important cycle points (based on dailyf article)
Bitcoin Gets Valued: Bank Of America Puts A Price Target On The Virtual Tender
Today, Bank of America became the first major finical institution to initiate analyst coverage of Bitcoin.
But Bitcoin is highly volatile. Thursday alone it hit a high of $1,240 before tumbling down to $870 on news that the Chinese government has restricted banks from using it. The value is back up to around $1,100 since that early morning low.
About Bitcoin...
Shunmas
Please stop vendetta :)