The Fundamental FOREX Blog

On Wednesday, 01-27-10 at 10:00 AM ET, the USD New Home Sales report was released by the Census Bureau

I did a “preview” of these reports on Tuesday, 01-26-10 at 10:00 AM ET, click here for a review.

Here is what happened:

USD – New Home Sales – Stats

Previous = 355K revised = 370K

Forecast = 372K

Actual = 342K

I was looking for a 30K difference of the “actual” above or below the “forecast” as the point to enter my trade, which it just barely did.

Here is how I was set up and the results:

USD-8-00AM-01-27-10
Looking for a 30K difference
Actual > Forecast = Good for USD
USD New Home Sales
——actual———-forecast———-previous
________________372K________355K
_____342K______ 372K________ 370K
Out at 342K or lower – BUY GBP/USD
Out at 402K or higher- SELL GBP/USD
Bad – “actual” came out lower then “forecast” by 30K
Bad – “actual” came out lower then “previous” by 13K
Bad – “actual” came out lower then revised “previous” by 28K

I set up to trade the GBP/USD and did, a winner and a loser.

Here are the charts.

a one minute EUR/JPY chart

The EURJPY currency pair moved down 18 minutes about 26 PIPS
Ranged!

a one minute EUR/USD chart

The EUR/USD currency pair minor move down 1st 3 minutes about 8 PIPS – wrong direction
Moved up next 7 minutes about 18 PIPS – right direction
Ranged down!

a one minute GBP/JPY chart

The GBP/JPY currency pair move down for 20 minutes about 25 PIPS
Moved up next 13 minutes about 40 PIPS
Ranged!

a one minute GBP/USD chart

The GBP/USD currency pair move down/up/down 1st minute with about a 25 PIP range
Ranged next 9 minutes about 40 PIPS
executed 2 trades here – one winner, one loser
Moved down next 10 minutes about 17 PIPS - wrong direction

a one minute USD/CAD chart

The USD/CAD currency pair move up/down 1st 5 minutes with about a 8 PIP range
Moved up next 13 minutes about 26 PIPS – wrong direction

a one minute USD/JPY chart

The USD/JPY currency pair move down 1st 9 minutes with about a 14 PIPS – right direction
Moved up next 51 minutes about 24 PIPS – wrong direction

The next schedule release of these reports will be on Wednesday, 02-24-10 at 10:00 AM ET.

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

Stay tuned!