Trade Plan for Today (Sept 3, 2009)

AUD/USD

In about an hour, Australian Trade Balance comes out. I expect it to surprise to the upside with the recent developments in China.

Hence, I am placing an Entry-Stop Order below:

ES BUY AUD/USD @ 0.8364
Stop - 0.8318
Limit 1 - 0.8394
Limit 2 - 0.8438

Hedge:

ES SELL AUD/USD @ 0.8318
Stop - 0.8364
Limit 1 - 0.8288
Limit 2 - 0.8248


GBP/USD and EUR/USD

UK Services PMI comes out at 4:30. I expect the numbers to be positive for the Pound. I will be looking to enter once a setup on the hourly chart appears. On the dailies, this pair saw a bounce yesterday.

ECB (European Central Bank) Interest Rate announce is up at 7pm but before that, Eurozone Retail Sales will be released at 5pm. I am looking to BUY EUR/USD once a favorable setup presents itself on the hourly chart. On the daily chart, a bounce is found yesterday.

SEPT TRADE #2 - BUY GBP/USD

Sept 2, 2009 4:00 pm (Manila)

Trade is out at breakeven as UK Contruction PMI disappoints. At one point, the trade was 1 pip from hitting the first limit. I moved the stops to breakeven when the pair began a descent sometime noon. Not bad, there are more pips to win in other days.

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

Sept 2, 2009 9:50am (Manila)

BUY GBP/USD @ 1.6161
Stop - 1.6103
Limit 1 - 1.6191
Limit 2 - 1.6254

At 4:30 PM, UK Construction PMI comes out which I expect to be bullish for the Pound.

Hedge:

ES SELL GBP/USD @ 1.6103
Stop - 1.6161
Limit 1 - 1.6073
Limit 2 - 1.6043

SEPT TRADE # 1 - BUY AUD/USD

Sept 2, 2009 11:08 am (Manila)

Taking the 2nd half out at +30 pips/lot for a total of +60 pips. Pair is encountering resistance at the 20-period MVA on the hourly chart.

Summary for this trade:

1st Half: +60 pips
2nd Half: +60 pips

Total: +120 pips

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

Sept 2, 2009 9:32 am (Manila)

Australian GDP just came out at 0.6% which is better than the 0.3% expectation. With this, the pair just headed for the moon and limit 1 just got hit at +30 pips/lot for a total of +40 pips.

2nd half is not risk-free with stops moved to breakeven.


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

Sept 2, 2009 9:10 am (Manila)

BUY AUD/USD @ 0.8266
Stop - 0.8229
Limit 1 - 0.8296
Limit 2 - 0.8320

In about 20 mins, Australian GDP data comes out which I expect to surprise to the upside. This should be good for the Aussie.