October 27th signal

Let's talk about Monday.

1. Monday, October 27th, 2008 (5:00 a.m. New York Time) GERMANY, EURO ZONE
At 5:00 a.m. we will have German Ifo Business Climate and it is expected to come out at 91.0 or 91.2 although there is quite wide range of expectations but most people expect lower number. Therefore, we need to use bigger lower trigger and we can try to use smaller upper trigger. Last month this report failed but chances are good this month it may work quite OK. I would strongly recommend to be very careful but I will be trading it myself. If it comes out at 88.9, I would sell EUR/USD and try to make some pips on the spike. If it comes out at 92.5 or higher, I would buy EUR/USD. I would rush to take profits on this because the market is weird and it is hard to predict how the market is going to react on it. Because there are still 5 hours to this report, it is hard to say how exactly approach this report because the price level right before will matter a lot. Also, if it comes out slightly lower than expected, it is very possible the price will spike down a bit and then go the other way so trading against the number also may work.

2. Monday, October 27th, 2008 (10:00 a.m. New York Time) USA
At 10:00 a.m. we will have U.S. New Home Sales. I cannot give triggers for this now because current price level will matter a lot. If you are new to Forex, I would skip this report.

That would be all for Monday.