Newsletter 08/10/2007

Trading Discussion News and Economy
1

ASIAN SESSION 08/10/2007

A) CALENDAR

-JAPAN - Holiday- Sports Day

-GMT 06:00 EU Trichet Speaks at Brussels Think Tank

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4230 117.55 2.0490
R2 1.4180 117.30 2.0470
R1 1.4155 117.05 2.0440
S1 1.4125 116.80 2.0385
S2 1.4105 115.60 2.0370
S3 1.4055 115.40 2.0330

C) WATCH
-Interest Rates

D) TRADING TIPS
Flags and Pennants
The more important points of both patterns:

  1. They are both preceded by an almost straight line move (called flagpole) on heavy <>.
  2. Both patterns occur at about the midpoint of the new market move.
  3. The pennant resembles a small horizontal symmetrical triangle.
  4. The flag resembles a small parallelogram that slopes against the prevailing trend.
  5. Both patterns take less time to develop in downtrends.
2

EUROPEAN SESSION

A) CALENDAR

-GMT 07:30 EU ECB’s Hurley Speaks at Conference in Dublin

-GMT 08:00 EU ECB Council Member Liikanen Speaks in Helsinki

�GMT 08:30 UK Indus. prod. (m/m), (Aug) EST 0.3% PREVIOUS -0.1%
�GMT 08:30 UK Indus. prod. (y/y), (Aug) EST 0.9% PREVIOUS 0.9%
Definition
Industrial production consists of the total output of a nation�s plants, utilities, and mines. From a fundamental point of view, it is an important economic indicator that reflects the strength of the economy, and by extrapolation, the strength of a specific currency.

�GMT 08:30 UK Manuf. prod. (m/m), (Aug) EST 0.4% PREVIOUS -0.3%
�GMT 08:30 UK Manuf. prod. (y/y), (Aug) EST 0.5% PREVIOUS 0.8%
Definition
Manufacturing production is the indicator of production level in the manufacturing sector.

-GMT 08:30 UK PPI input s.a (m/m), (Sep) EST 1.5% PREVIOUS -0.5%
-GMT 08:30 UK PPI input n.s.a (y/y), (Sep) EST 4.3% PREVIOUS 0.6%
-GMT 08:30 UK PPI output n.s.a (m/m), (Sep) EST 0.2% PREVIOUS 0.1%
-GMT 08:30 UK PPI output n.s.a (y/y), (Sep) EST 2.8% PREVIOUS 2.5%
-GMT 08:30 UK PPI output core s.a (m/m), (Sep) EST 0.2% PREVIOUS 0.2%
-GMT 08:30 UK PPI output core n.s.a (y/y), (Sep) EST 2.0% PREVIOUS 2.4%
Definition
The PPI gauges the average changes in prices received by domestic producers for their output at all stages of processing. The PPI data is compiled from most sectors of the economy, such as manufacturing, mining and agriculture.

-GMT 10:00 GER Factory Orders (m/m), (Aug) EST 1.9% PREVIOUS -7.1%
-GMT 10:00 GER Factory Orders (y/y), (Aug) EST 4.1% PREVIOUS 9.8%
Definition
Factory orders refer to the total of durable and nondurable good orders.

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4230 117.75 2.0490
R2 1.4180 117.55 2.0470
R1 1.4155 117.30 2.0440
S1 1.4105 116.80 2.0385
S2 1.4055 115.60 2.0370
S3 1.4030 115.40 2.0330

C) WATCH
-Interest Rates
-GMT 08:30 UK Indus. Prod
-GMT 08:30 UK Manuf. prod.
-GMT 08:30 UK PPI

D) TRADING TIPS
Flags and Pennants
The more important points of both patterns:

  1. They are both preceded by an almost straight line move (called flagpole) on heavy <<trading noise>>.
  2. Both patterns occur at about the midpoint of the new market move.
  3. The pennant resembles a small horizontal symmetrical triangle.
  4. The flag resembles a small parallelogram that slopes against the prevailing trend.
  5. Both patterns take less time to develop in downtrends.
3

US SESSION

A) CALENDAR

-USA Columbus Day

B) SUPPORT-RESISTANCE
EURO/USD USD/JPY GBP/USD
R3 1.4155 118.00 2.0440
R2 1.4120 117.75 2.0425
R1 1.4105 117.55 2.0385
S1 1.4080 117.30 2.0330
S2 1.4055 117.10 2.0300
S3 1.4030 116.80 2.0275

C) WATCH
-Interest Rates

D) TRADING TIPS
Flags and Pennants
The more important points of both patterns:

  1. They are both preceded by an almost straight line move (called flagpole) on heavy <>.
  2. Both patterns occur at about the midpoint of the new market move.
  3. The pennant resembles a small horizontal symmetrical triangle.
  4. The flag resembles a small parallelogram that slopes against the prevailing trend.
  5. Both patterns take less time to develop in downtrends.