Forex Signals for 20/01/2010

Recap

Hello again,

Here is a quick update on GBP/USD

“Bank of England Governor Mervyn King said “undesirably low” money supply growth will curb inflation and return it to the 2 percent goal, suggesting he’s not yet ready to unwind emergency stimulus”.

(News from http://www.bloomberg.com/apps/news?pid=20601102&sid=aYcTbhJa2Qx0)

The MPC members meeting should be neutral with a vote of 0-0-9 which means no change at all. It’s more likely that interest rates will stay unchanged or reduce from the dovish comments of Mr. King.

If IR stays the same or decreases, the pound (GBP/USD) may head down and rise up again. If this scenario eventuates, look for a:

Buy at 1.6397

Stop at 1.6342

Profit at 1.6457

Today’s Signal:

EUR|USD – Buy – 0 | SL 0 | TP 0

Sell – 0 | SL – 0 | TP – 0

USD|JPY – Buy – 91.52 | SL – 91.13 | TP – 91.92

Sell – 90.46 | SL – 90.85 | TP – 90.06

EUR|JPY – Buy – 0 | SL – 0 | TP – 0

Sell – 0 | SL – 0 | TP – 0

NOTE: For those who are thrill seekers, you may decide not to bring SL to BE once half target is reached and let profit run until final target is reached. On the other hand for those more cautious, do not be afraid to bring your SL to BE when you reach half way to target and take partial profit half way.

IMPORTANT: I will be sending two possible scenarios from tomorrow. Buy and sell orders on most of the majors and the Yen pairs. If for example buy order is triggered, cancel sell order and vice versa.

PSS: There may be changes i the trade posted throughout the day, if trade does not look favorable, I will advice all of you ASAP through twitter.

TRADE MANAGEMENT:

Bring Stop Loss to break-even as soon as you reach half way to profit target and take partial profit at this point.

Happy trading

Ash Naeck