More News This Week For Trading EUR/USD Wednesday

There has been plenty of news to move all the markets in the last week. Fortunately, this trade recommendation works whichever direction the market moves specifically, for the EUR/USD. In addition, it allows the market to move a great number of pips and still have a 1:1 max risk reward ratio. The trade is based around a scheduled news event for 8:30 AM ET Wednesday, August 26, 2015. The Census Bureau will be releasing the Core Durable Goods and Durable Goods Orders that are released monthly about 26 days after the month ends.

Core Durable Goods Forecast To Be Up 0.3%

Durable Goods numbers are important indicators for production. They measure the change in value of new purchase orders placed with manufacturers and include hard product items like computers, appliances, autos, and planes. Since transportation items are quite volatile and can skew numbers, those items are left out of the Core Durable Goods number. Both reports were up for June, which was reported in July. When the actual is greater than forecast it’s good for the USD. For the reports coming out Wednesday, it is forecast Durable Goods will be -0.5% and Core Durable Goods will be 0.3%.

Market Can Move Either Direction With This Strategy

To trade this event, the strategy recommended, an Iron Condor, can be used to capture profit regardless of which way the market goes. Setting up an Iron Condor, you want to trade Nadex EUR/USD spreads. You will buy a lower Nadex EUR/USD spread with its ceiling being where the EUR/USD is trading at the time. You will sell an upper Nadex EUR/USD spread with its floor being where the EUR/USD is trading at the time. Enter both spreads as early as 8:00 AM ET with expiration at 10:00 AM ET. Profit potential should be $30 or more.

It’s important to have those parameters when setting up the trade. The ceiling of the bought lower spread should meet the floor of the upper sold spread and be where the market is trading at the time. With a profit potential of $30, the EUR/USD can move up or down 60 pips and your trade will still have a 1:1 risk reward ratio. However, for this event the EUR/USD tends to react and then pull back. The closer it pulls back to between your two spreads, the more profit you make with max profit being directly in the middle between your spreads. You can trade more contracts if you like to increase your profit potential. Just be sure to enter them at the same time and have the same number of spreads on both sides of your Iron Condor. Also, you can leave your trade on until expiration to have the maximum time for a pull back and to profit.

If you would like to learn more about trading the news or trading Nadex spreads, you can visit www.apexinvesting.com. For a full example of an Iron Condor trade, see The Awesomeness Of An Iron Condor. Nadex lists binaries and spreads and can be traded from 49 countries.