Trading the US Durable Goods Orders. Jan 26 2012

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Time report is released: 8:30 am eastern time (New York Time).
This report is typically classed as a “B” report and does the ability to surprise the market and move price substantially.

What is US Durable Goods Orders:
The US Durable Goods Orders report provides data on new orders that are received by over 4000 manufacturers of durable goods. Durable goods such as automobiles, turbines and semiconductor equipment with a “useful life” of more than three years.

The “headline” number will exclude orders for transportation and defense orders as they are considered to show higher volatility.
Traders and investors consider this report as a sign of business demand and can signal confidence in business conditions which could potentially lead to an increase in hours worked and non farm payrolls.

In this report, January 26 2012.
Durable goods orders “headline” expected 2.0% . previous 3.7%.
Durable goods orders “core” expected 0.9% . previous 0.3%.

A higher than expected reading is considered bullish for the USD, while a lower than expected reading is considered bearish for the USD.

Markets reaction to last months report.
Since this is historically a medium impact report “B” report, the EUR/USD can move 35 to 40 pips after the numbers are released. The EUR/USD fell 30 pips immediately after the Durable Goods Orders were released for last month and the EUR/USD eventually closed down for the day.

Support and Resistance levels.
Current support levels at the time of this writing.
EUR/USD is 1.2930 (1 hour chart).

Current resistance levels at the time of this writing.
EUR/USD is 1.3197 (4 hour chart).



On Thursday January 26 2012 when this number is released there will be Continuing Jobless Claims at the same time and this data should be considered when making a trading decision.


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