The Fundamental FOREX Blog

Tomorrow, Monday, 01-25-10 at 10:00 AM ET 2 USD reports are to be released, these are the USD Existing Home Sales and USD Existing Home Sales MoM reports, released monthly by the National Association of Realtors.

Probably the most important report of the 2 is the “Existing Home Sales”.

These reports are “stand-alone” reports this time and I posted a “preview“ and “follow up“ report for November at which time they were “stand alone“ as well.

I did a “follow up” post on Saturday, 11-28-09 for the November reports, click here for a review.

The December reports included 2 additional USD reports – I did not post that month.

Here are the stats for this month:

USD Existing Home Sales stats:

Previous = 6.54 M

Forecast = 5.98 M

USD Existing Home Sales  MoM stats:

Previous = 7.4%

Forecast = ????

This “forecast” indicates that there will be an decrease of home sales of about 56,000 homes over last months sales.

Here is how I am set up for tomorrow:

USD-8-00AM-01-25-10
Looking for a 20K difference
Actual > Forecast = Good for USD
USD Existing Home Sales
——actual———-forecast———-previous
_______________5.98M________6.54M
Out at 5.18M or Higher – BUY USD/CAD
Out at 5.78M or Lower- SELL USD/CAD
For the ideal trade set up, watch that both reports move in the same direction.

I think that a good difference between the “actual” and the “forecast” of say 20K or more could present a brief “scalp” opportunity with the currency pair EUR/USD or the USD/CAD and perhaps some of the other currency pairs.

I did post a “follow up” on the results of this report, click here to see what happened.

The next release of theses reports will be on Monday, 02-26-10 at 10:00 AM ET.

I will probably post a “preview” a day or two prior.

So, stay tuned!