Upcoming week might be very interesting for those who like trading on news.
We are expecting an update of important macrostatistical indicators such as:
* RBA Interest Rate Decision
* Australian GDP (QoQ)
* ECB Interest Rate Decision
* BoC Interest Rate Decision
These events performed quite well in testing trading on the news.
What could the strategy be?
For each of the indicators, it will be the same (M15 timeframe):
If the index rises, we immediately buy currency pairs (whatever you like) with the national currency in the base and sell pairs with the national currency in the denominator.
If it declines, we buy currency pairs with the national currency in the denominator and sell currency pairs with the national currency in the base.
For example, if the Australian interest rate rises, we buy AUDUSD, AUDJPY and sell EURAUD, GBPAUD.
- In 1 hour for Eurozone and Canadian interest rates,
- in 2 hours for Australian interest rates,
- in 8 hours for Australian GDP.
Stop Loss is placed below/above the previous day's minimum/high.
There is no 100% guarantee, but the strategy is worth a closer look!