New home sales, whats going on EUR/USD?

Increased Home sales :00am USD
New Home Sales
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My Broker & Finacial Advisor as well as my Brother who is a trader all say that this should have positive results for USD.

Went short Eur/usd
Anyone suggest Why the 80+ pip move in Long for EUR.

Only tradeing micro account but still anoying that what fundamentally should be positive becomes negative.

Still learning and would love to know more about trading.

I know its a bit of a rant at the markets....... after all they are always right????

Comments welcome.

Agreed, everything else being equal, the result should have been positive.

I'm only guessing, but perhaps (1) the news outcome was anticipated had already been 'priced in' in the EU fall the previous day (strange though, when one considers the difference between the 'actual' and 'forecast' values on the calendar), and/or (2) there was a bigger agenda on the go at the time. EU did fall ~10 pips in the few minutes following the scheduled time of the announcement, but then apparently something more significant happened, causing the upward trend for the day to resume.

Anyway, like I said I'm only guessing, because I trade technicals rather than news outcomes. After results like that, now I know why, LOL.

Move to a mechanical system of trading without emotions after getting a system which gives you an edge.

Mark Douglas say ' anything can happen in market' and we try to rationalize the unexpected through market analysis.

Unexpected can not be rationalized because it is a hidden game- You dont know what other players are thinking.

At the end of a strongly trending week (i.e. Friday midday london to NY close) there is often a reversal.

Also remember that EUR news matters in any pair as well!

GBP/USD didn't shoot up so it looks like a Euro issue---any news of concrete money to bail out Greece makes Euro go up temporarily, and then the continued worry and reality of the underlying economics makes Euro trend down the rest of the time.

http://www.bloomberg.com/apps/news?p...d=aDsod9l4gmBE

And USD/JPY did go up apparently with news showing increasing US economic strength.

Trading the news is very difficult and the volatility can be quite extreme in the short term.

The EUR/USD situation is so complex right now, and there are fundamentals to support either direction.

I'd be more inclined to listen to my brother than my Broker/Financial Advisor. But then again, call your own shots, take some managed risk, and perhaps you will become a better trader than your brother.

Good Luck!

Thank you for all your replies.

BIG learning curve!!!

Have been profitable with paper trading(demo) account but as I have found out THOSE profits are not worth the paper the are written on!!!

What I have found out / learned so far this week.

1. Have a Plan WRITTEN down and follow it to the letter
2. NEVER chase the market it can be quicker than me
3. along with 2 above NEVER NEVER double up to get revenge( pick a fight) on the market... It is ALWAYS bigger than me.

4. Start with micro account to build confidence/ get used to taking losses and profits.

Just a few learning out comes from this week.

Now I just need to find a mechanical system to give me that EDGE!!!!

My humble piece of advice - study who and what moves the market. Then find a way to exploit it. Your mind should be your edge.

Rgrds

Newsflash..........news means nothing.....if it was as simple as tradingheadlines, we'd all be rich. the market moves in waves and patterns based on socio and economic conditions much larger than any one news event. you may see a short pop from a news flash, but by the time your brother or financial advisor can tell you to trade it, it has passed and your late to the party. learn technicals, nothing is perfect, but you can learn and trade from your charts 10X better than trying to figure out what a news story means and what it will do to the market.

Well, trading BEFORE the release of news is like a gamble. It's either it goes way better than expected, in which case a given currency pair reacts negatively or positively, or it goes and fails to meet expectations, in which currencies also act accordingly.

Either way, traders don't know whether actual results will be positive or negative to the currency pair. Better still, as suggested, you can use technical analysis in determining at least when to enter or exit.

Been a While since I posted.

Thanks for all your replies.

My Story so Far.

Started with £1500. Taken it to £1090- (Not following a set plan, chasing the market, Trying to get revenge, following news, looking at 5min charts as well as weekly, daily, hourly etc. sometimes 5-7 indicators on screen, pulling hair and biting of nails!!)

Change of plan NEEDED

Taken £1090 to £1840 - Took time to read ALOT on FF. Heres how I am trading:

Fundamentals: whats going on BIG picture
MTF- wkly/dly/1hr
20 simple MA- price up/below all TF
MACD- +/- 0 line, last 2 bars +/-

Entry 15min chart cci 14 +/- 50

SL and TP = 3:1 reward/risk and support & resistance.

Going well until today.... What did I miss

Details of trade to follow.

My Trade Today... Constructive advice welcome.. still learning

EUR/USD - 6am- 11am gmt ( chart gmt+2)

Fundamental- Eur on slide, over night short covering heading lower in early trading (pre 6am)

Tech- Wkly & Daily below 20ma also last 2 MACD bars -'ve below 0 line

1hr below 20ma macd +'ve but Below 0 line.
looking for entry 15min chart cci to go -50.

at 6am price move below 20ma, Yesterdays S1 and todays Pivot.
6.15 cci -50 ENTER green line SL= red line TP = at least S1 today and 1.2187.

7am and 7.45 negative news comes out for EUR price stays below Pivot.... ALL LOOKS GOOD for SHORT day.

Possible ADD position or entry at 8.30am cci -50 again.(second red arrow)

9am whats happening- who is buying the EUR(not me!!!) WHy are they buying????

WHAT HAVE I MISSED

Thoughts and advice welcome

Thank you

hello dear 20/20
can i have your color cci indicator (veiwable in pics) please?
thank you if you give me that,
regards
sazdahani