On Tuesday, April 20th (5:00 am New York Time) we will have German ZEW Economic Sentiment coming out. It is expected to read 45.2. Last month it read 44.5.
In addition to ZEW Economic Sentiment, we will also have ZEW Current Situation Index coming out. It's not so important, and it almost never conflicts with the main report. If it does conflict, then stay out of the trade.
Please read what this indicator means and how it affects the EUR/JPY by going to this link: German ZEW Economic Sentiment
The trigger for this indicator is 6. This means that if ZEW Economic Sentiment comes out at 51.2 or higher, EUR/JPY will probably go up by 30 pips or more in the first 45 minutes of the report. If it comes out at 39.2 or lower, EUR/JPY will probably go down by 30 pips or more in the first 45 minutes of the report.
Recently this indicator did not perform well so that's why I use such big deviation. Most likely it will be a no trade.
Obviously, the bigger the difference between expected and actual numbers, the bigger will be the move.
If you miss the initial spike, don't worry, you can still make money on the after-spike move. Click here to read the after-spike retracement strategy for this report: German ZEW Economic Sentiment (after-spike retracement strategy)
For example: on August 18th, German ZEW Sentiment came out at 56.1, versus an expectation of 45. It was a great money making opportunity. See for yourself what happened on this chart: Forex news trading currency exchange charts
You can study the entire history and charts of this report by following this link: Forex News Trading | Details and History for GER ZEW Economic Sentiment
Currently it is a very weak report to trade so feel free to skip it.
I hope you make some money on this report
JCLyons Signals Review Team
Monday, April 19, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment