Forex News Trading: Trade for Tuesday, January 29, 2019

7:30 PM EDT
AUD CPI q/q
AUD/USD

There are two components to this, the CPI and Trimmed Mean CPI. Both carry a lot of weight but the last time either had any deviation at all was a year ago. If either deviates we should get a decent move but we need both to have any hope of follow through.

The pair has been moving sideways for awhile now so there is no preference of direction. The challenge here is that in a years time, market behavior has changed and we haven’t had any deviation in that period to give us a measure of how much faith the market puts in the release.

A year ago we got a 24 pip spike with another 25 pips of push within the first 15 seconds on a deviation of .1 on both the Trimmed and CPI. But how the market would react today is very much up in the air.

I would trade conservatively on the Straddle trade but be ready to enter a retracement trade if you sense the push is ending. This is very subjective but the best we can do given the absence of data. Look for at least a 20 pip spike before opting to enter.

SETTINGS: Set country to 3 and buy/sellPips to at least 20. Be ready to enter a retracement trade if one goes live and you sense a reversal after 15 or 20 seconds, if not sooner.

About Barry Battista

I am a software guy that started trading in 2006. I have been trading the news for a living ever since. Eventually I wrote some code to help a friend and I improve our odds, and gradually the software took on a life of its own. My intention is to adapt this trading style to the ever changing Forex markets to always provide the trader with the tools and information to give them the maximum odds of a profitable trade.
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