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8:14

DailyFX Analyst - Hi, my name is David Song, Currency Analyst at DailyFX.com. Today, we will be covering the U.S. Advanced Retail Sales report for May, and will take a look at price action before and after the release that could set the stage for a EUR/USD trade. Feel free to ask questions throughout today's presentation. I will answer them as time permits. Let's get started.

8:15	[Comment From David] Will a higher print for the retail sales add to the current rally of risk and therefore a higher eur/usd

8:16	DailyFX Analyst - Well, it is very difficult to predict how the markets will play the event, so we will keep a close eye on the markets for a potential trade.

8:16	DailyFX Analyst - Let's begin by going over the conditions we have laid out to trade the sales report. We’ve chose to focus on the EUR/USD as the pair remains the most liquid amongst the majors.

8:16	DailyFX Analyst - But before we move on, let’s take a quick poll to see what our audience is looking for.

8:17

DailyFX Analyst - For a long dollar trade, we are looking for a rise of 0.5% or greater, along with supportive price action to enter a short EUR/USD trade. At the same time, if the release unexpectedly falls 0.2% or more for the third consecutive month in May, market conditions could warrant a long EUR/USD position.

8:17

DailyFX Analyst - However, the sharp spikes in the exchange rate typically following this release has the potential to trigger false signals, so let’s take some steps which could prevent being on the wrong side of the market. Alterations in the fundamental outlook paired with shifts in government policy tend to have the biggest impact on the exchange rate however, swings in risk appetite could lead market volatility through the event, and we will stick with our strategy in order to minimize the risk for loss.

8:18	[Comment From zarnel mejia] so that means the best possible postion for this one is going long?

8:18	DailyFX Analyst - No. We will wait for a trade.

8:19	DailyFX Analyst - Chasing a trade typically can lead to a greater risk for loss.

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