June Trade # 29 - BUY EUR/USD

June 25, 2009 11:52 am (Manila)

Trade is out at +24 pips/lot for a total of +144 pips. I decided to exit the trade as I will be unable to monitor this trade to spend time with my son who's celebrating his 2nd birthday today. Still, it was a great trade as I was able to gross over a hundred pips for the 2nd time (2 out of 3 trades) this week.

==============================================

June 25, 2009 8:23 am (Manila)

BUY EUR/USD @ 1.3946
Stop - 1.3876
Limit 1 - 1.3976
Limit 2 - 1.4007

Fundamental Reason: At 5:00 pm (Manila) today, Eurozone m/m Industrial Production Orders will come out. Expectation is that it will be flat (0.0% increase vs. previous contraction of -0.8%). This should be bullish for the Euro. As one of the largest industrial producing regions of the world, this data will matter for the Euro. Though relatively flat, it might mean that the pace of contraction in the Eurozone's economy is decelerating - raising optimism for growth in the coming months.

This is a leading indicator of production. Rising purchase orders signals that manufacturers will increase activity as they fill the orders. The effect will then trickle on to industries directly affected by Industrial Production - suppliers and contractors, for example.