How To Trade The U.S. Personal Income Using EURUSD

[B][U]What is Expected[/U][/B]
Time of release: [B]08:30 EST, 12:30 GMT 6/29/2007[/B]
Primary Pair Impact : [B]EUR/USD[/B]
Expected: [B]0.6%
[/B]Previous: [B] -0.1%[/B]

[B]How To Trade This?[/B]
Personal Income and Spending data has produced mix results through the past three releases, as surprises have frequently been overshadowed by data from other economic figures. Upcoming news will also include key Core PCE numbers, leaving the News Trader to gauge the relative importance of each report.
Based on price action alone, it seems as though risks may remain to the upside for the downtrodden US dollar. Of course this all depends on where we see the EURUSD trading in the moments ahead of the data. Our post news trading strategy has shown mixed results on the Personal Income and Spending figures. If, however, Income and Spending and Core PCE surprise significantly to the topside, the trader may look to go short the EURUSD on confirmation of a five-minute decline. Stop losses shall be set above immediate swing-highs, while initial take-profits should be eyed a similar distance away to the downside.
If the Income, Spending, and Core PCE figures disappoint, on the other hand, the trader may look to go long the EURUSD on confirmation of a five-minute rally. Stop losses shall be limited to the pair?s immediate swing-lows, while the trader may look to set initial profit targets at the same distance above entry price.