"Good" for currency

If we look at what's Usual for an upcoming economic stat, we might see something like, "Actual < Forecast = Good for currency;". I assume that by "currency", is meant what's listed under the heading "Currency". Often it's USD. So, what exactly does "Good for currency" mean? Does it mean we might expect that currency to get stronger against it's counter-currency, or weaker? Thank you.

Hello Admin. Where was my question moved to? I don't see a link. Thank you.

Well, obviously, if something is good for a given currency, then it means it will reinforce against other currencies. However, it doesn't necessarily means you will see an actual "response".

It's all about the relative strength at a given moment...

Let's say you're falling from a 100 story building, around the 50th floor, a powerful wind is blowing from bottom to top. It is good for the person who is falling. However, this wind might not be powerful enough to stop completely the fall...

I hope you got it with my comparison (strange one i should say )

Thanks for your reply. One followup question, if I may: does "reinforce against other currencies" mean currency could get STRONGER against it's counter-currency?

Example: we see "Actual > Forecast = Good for currency;" Next, we look to the "Currency" column heading and we see "CAD". So we are thinking if the actual economic numbers are greater than what was forecast, it would be "Good" for CAD, meaning we expect CAD to get stronger against it's counter-currency, right?

Example continued: OK, we are looking at, say, USD/CAD. The econ numbers come out, and what do you know, the numbers ARE greater than what was expected. Well, if we also expect CAD to get stronger, then we should see USD get weaker, and so we would short the pair, right?

Now, I like what you said, there could be other factors we are not aware of, such that what we actually see is that USD (not CAD) begins to go higher and we are suddenly in a losing trade. Often, the money makers fake, say 35 pips in one direction, then shoot back in the other direction, taking out all stops, or worse. And we never know really what to expect. What to do?

One possible answer: Never open a new trade during the news release. Instead, you have already opened a trend trade much earlier. That trade must be +35 or more before the news release. Set SL for net +1 AND a graphic horizontal line at the same +1 level. Use this line as a master R/S level for the next 24 hours. IF, and only if, price does not consolidate around the R/S line, you will profit from the news release, even if the retracement is significant. Try it. You'll like it.