mercoledì 23 maggio 2012

US New Home Sales

May 23, 2012

   

US New Home Sales usually follows the trend of Existing Home Sales, therefore we´re likely to see an inline release today.
Here is the forecast:
10:00am NY Time New Home Sales Forecast 335K Previous 328K
DEVIATION: 70K (BUY USD 400K /  SELL USD 260K)



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.”

The Trade Plan
We´ll trade this release using a deviation around 70K; if the release is lower, it would strengthen USD aversion sentiment and we should look to SELL USD. A stronger number could provide temporary support for the USD and we may see a slight rally therefore we should look to BUY USD.

Primary currency pair  : USD/JPY , EUR/USD , AUD/USD


USDJPY
Supports    : Weekly  78,20  , Daily  78,95  , Hourly  79,25


Resistances  : Weekly 80,15  , Daily 79,65  , Hourly 79,45


BOOKS


Forex Price Action Scalping: an in-depth look into the field of professional scalping - Bob Volman - EUR 27,19
9090264116



 


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