10:00am NY Time New Home Sales Forecast 354K Previous 342K
ACTION: USD/JPY BUY 420K SELL 280K
We’ll be focusing on the the New Home Sales figure, which is expected at 354K; our tradable deviation is 70K, and if the release is lower, it would strengthen risk aversion sentiment and we should look to SELL USD/JPY or possibly the USD/CHF pair as well; if the number is higher, it would fuel risk appetite sentiment, we may see a rally in USD/JPY or USD/CHF and possibly further downward pressure on the already sketchy EUR/USD pair.
However, with the current USD bullish sentiment, we should take the context of the market prior to the release into consideration and stay away from SELLING USD unless we are at a significant resistance area for the USD.
Definition:
“Measures the annualized number of new residential buildings that were sold during the previous month. A rising trend has a positive effect on the nation’s currency because the housing market is a leading gauge for the overall economy. A high level of housing activity signals that the construction industry is healthy and that consumers have the capital to make large investments. More importantly, new housing activity creates an economic ripple effect as home owners buy goods such as appliances and furniture for their homes, and builders buy raw materials and hire more workers to meet demand.”
Related posts:
- US New Home Sales 03/24/2010
- US New Home Sales m/m 11/25/09
- US New Home Sales 01/27/10
- US New Home Sales Forex Trading Plan 10/27/10
- Forex Trading Plan For US New Home Sales 08/25/10
- Forex Trading Plan for US New Home Sales 04/23/10
- Forex News Trading US New Home Sales 02/24/11
- Forex News Trading US New Home Sales m/m 03/23/11
- Forex News Trading US New Home Sales m/m 04/25/11
- Forex News Trading US New Home Sales 01/26/11
{ 2 comments… read them below or add one }
Henry God Bless for Ur kind direction. Iam a new trader and just started it today. pls, does the strenght meter work during the news time?
Yes, please watch the video on currencystrengthmeter.com for more details