Archives for June 2018

The USD was weaker today and oil traded at 3.5 year highs.  After making a second lower high in the U.K. session with a reversal pattern, a short was taken on the USDCAD risking 14 pips for a potential 64 pips to our daily target.  This was clearly a counter-trend trade but fundamentals, technicals and an inexpensive stop loss made the trade attractive.

The pair came down vertically and bounced at yesterday’s low taking us out just above of our daily target.  With any counter-trend trade, the idea is to take minimal risk initially and get the risk out of the trade quickly as price moves in your favour.  Secondly, you’re less likely to make as much on a counter-trend trade, so when price shows signs of reversing, either lock in more of your profit or close the trade.

If NAFTA talks continue to go sideways, the Canadian economy could slow substantially and the “R word” could get mentioned by the Bank of Canada.  As Saudi Arabia and Russia produce more oil, the price of WTI is likely to come back down from its highs… but we will leave that one to oil traders.  The 1.3400 figure hasn’t been taken out yet, but that doesn’t mean that 1.35oo isn’t a longer term target for some.

North America has two holidays next week – Monday for Canada and Wednesday for the U.S.  Tomorrow may be active as we close mid-year trading.

Good luck with your trading!

 

 

 

 

The EURUSD peeked above its Asian high as the U.K. session got underway and quickly reversed with a bearish engulfing candle back to trend.  A short was taken risking 20 pips for a potential 68 pips to our daily target at 1.1584.  Price moved down to test its Asian session low and yesterday’s low before descending further.  With lower wicks forming on the candles, we tightened our profit stop further to just above the high of each previous candle and it was hit before the U.S. open and a further move down to our daily target.

The commodity pairs were also simultaneously hit with a temporary buying spike.  This is the reason for locking in profits as the market moves in our favour…especially if long wicks are forming. Keep in mind that news can come into the market and cause a complete reversal and hit deep stops.

Good luck with your trading!

With major stock markets selling off today, a short was taken on the AUDJPY.  Both the AUDUSD and AUDJPY looked like attractive shorts when the U.S. session got underway.  They both had moved down during the Asian session then recovered a bit.  As they began to roll over in the U.S. session a short was taken in the AUDJPY risking 10 pips for a potential 33 pips to our daily target at 81.02.  Our daily target for the AUDUSD was .7385 and thinking that it would pause at .7400 made the AUDJPY more attractive… with the 81.00 figure just below our target.

We were closed by our profit stop as the pair found buyers at it’s Asian low.  Either trade would have been a good one.

Remember to keep protecting your profits by moving your profit stop regularly as price moves in your favour.  The markets are particularly volatile  with trade tariff talk heating up.

Good luck with your trading!

Although the Bank of England left rates on hold yesterday, the GBPUSD climbed higher.  Choosing to fade that move today during the U.S. session overlap, a short was taken risking 16 pips for a potential 71 pips to our daily target.  The idea was to ride it down through yesterday’s high and the Asian session low, on the way to our daily target at 1.3214.  It wasn’t to be as price began to retest an important level on the 1 hr chart and our trade was closed for minimal gains.

The USD is weaker today and the continued trade tariff rhetoric is not helping it.  Let’s hope for better trading opportunities next week.

Enjoy your weekend!

 

The trade war implications between the U.S. and China have the markets unnerved and moving toward safety today.  With major stock indices selling off to begin the week and money flows moving toward the JPY, we chose to short the AUDJPY.  The AUDJPY is a good gauge for risk appetite and today it moved down.

A short was taken early in the U.S. session as price made a third lower high…risking 10 pips for a potential 47 pips to our daily target.  Price moved lower testing its Asian session low, then descended further into the London close, where we exited the trade.

The AUDUSD moved in parallel.  Either trade was attractive.

There is so much going on geopolitically that the majors are likely to remain active going into the summer.  The USDCAD is likely to be active this week as we approach the OPEC meeting on Friday with rumours of both Russia and Saudi Arabia wanting to increase oil production by 1.5 million barrels per day.  Commodity currencies have been suffering in the face of the strong USD.  Talk of trading tariffs between the U.S. and Canada are also weighing heavily on the Canadian dollar.

Good luck with your trading!