Archives for May 2019

Most of the majors are trending, but the daily ranges are confined and it’s been difficult the past couple of weeks to make more than 15 or 20 pips in a pair intraday. As a result, I have not been posting.

Today the GBPUSD gave us 25 pips to the downside. Risking 15 pips for a potential 49 pips to our daily target, we went short early in the U.S. session overlap. Price moved down to test yesterday’s low and continued lower. As a doji candle formed with a long lower wick, we tightened our profit stop to 25 pips and the trade was closed.

It seems that the U.S. – China trade talks lack of outcome has many traders on the sidelines for now.

British politics continue to weigh on the GBPUSD which may take out 1.2500 soon. The USDCAD continues to try to take out 135.00 and the USDJPY continues to move between 109.00 and 110.50 with 110.00 being a critical level. The EURUSD continues lower making lower highs and we will see if buyers come in above the 1.1000 figure. AUDUSD and NZDUSD are trending lower, but are moving a small number of pips each day compared to their normal range.

Tomorrow we enter month end and a week where the USD index has climbed each day. I would not be surprised to see it pulls back to test 98.00 before it climbs higher. Like the USDCAD, it may not be long it moves higher still.

Good luck with your trading!

The USD index continued to move higher today and we will see if it closes above 98.00 to end the week.

The Canadian dollar one would think would be having a good week too after favourable comments regarding the economy from the Bank of Canada’s Governor Poloz. WTI oil has continued upward this week, but the USDCAD continued higher. Is it because USD strength is offsetting the positive fundamentals of the Canadian dollar?

At 1.3500 the USDCAD tends to reverse lower. Today was no different and a short was taken risking 20 pips for a potential 49 pips to our daily target at 1.3444. As the reversal unfolded, price moved lower and appeared to bounce at its Asian session low. It is typical for price to test and retest certain levels, and on the hourly chart a very important technical level acted as support and our trade was closed protecting profits at this level.

It’s hard to know if the catalyst for the move lower today coincided with rumours circulating that the U.S. and Canada had come to an agreement removing U.S. tariffs on Canadian steel and aluminum. The 1.3500 figure continues to be formidable resistance for the USDCAD for now.

Monday is a holiday in Canada.

Enjoy your weekend and good luck with your trading!

The market appears to have turned its focus away from selling the USD this week, despite the rhetoric between the U.S. and China. On Monday the USD sold off and then bounced and has shown strength each day since.

The GBP remains mired in British political uncertainty and continues to offer short setups as it trends lower. On Wednesday an entry short was found risking 16 pips for a potential 54 pips to our daily target at 1.2845.

On Thursday we were able to risk 15 pips for a potential 57 pips to our daily target at 1.2773. Both trades were very similar and most major pairs are showing very familiar trading patterns once again.

The U.S. dollar index is approaching 98.00 today – where it has struggled to stay higher recently. It would not be unusual for it to pull back a bit tomorrow, if risk off sentiment resurfaces. The market will also be concerned about conflict between the U.S. and Iran escalating.

Good luck with your trading!

The GBPUSD is trending lower again and a failure to get above a critical level today near 1.2960 created a short entry…also ending its retracement wave higher.

The trade required a 15 pip stop loss for a potential 61 pips to our daily target at 1.2888. Price continued lower as the U.S. session got underway and the markets appeared less focused on the impact of tariffs.

The pair found buyers just above the 1.2900 level and our profit stop was triggered.

It looks like it could be active week.

Good luck with your trading!

The markets have been waiting for a positive end to the U.S. – China trade talks, but the drama continues and the sentiment is “risk off” today.

A currency pair that is useful for gauging risk is the Australian dollar Japanese yen. The Aussie being a commodity currency and the yen being a safe haven currency.

In the current political climate, with the disappointment from the lack of progress in the U.S. – China trade talks, the market has been scrambling for safety since President Trump’s tweets from Sunday a week ago. As tariffs increased on Friday for China, it is no surprise that China is retaliating against the U.S. – particularly in light of further comments made by President Trump since. The markets were expecting progress and lead to believe that an agreement was near. The markets have taken a big step back now and riskier assets continue to be sold.

For a Monday it was pretty exciting and almost any pair was easy to trade.

We entered the AUDJPY short risking 12 pips for a potential 42 pips to our daily target at 76.08. Price had already lured the breakout traders in at the London open and stopped them out with a pullback. We entered hoping to be well into profit before the U.S. open. Protecting our profit as price descended and closing the trade at our daily target worked well. With the faltering USD it appeared that we could have stayed in for longer but tomorrow is another day.

The USD has been weakening this past week, but so far the DXY has held above 97.00. The U.S. economy continues to be very strong and although the news is disturbing for the markets at the moment, this too shall pass.

Good luck with your trading!

British political turmoil continues and a Brexit solution still appears to be far away.

As the U.K session got underway, price moved down to test yesterday’s lows and bounced upward to test its Asian session low. Price was unable to close above this level and and short was taken risking 17 pips for a potential 63 pips to our daily target at 1.2978.

Price moved lower but could not penetrate the big figure at 1.3000 and drifted sideways going into the U.S. session overlap. Price eventually closed beneath 1.3000 and immediately found buyers and continued to close back above this very important level today. We closed the trade after 3 candles higher.

The next couple of days could be quite volatile for the USD as the U.S. – China trade talks continue tomorrow in Washington. President Trump’s threat of 25% tariffs for China pending for this Friday, may or may not come to pass, depending on how the talks go.

Good luck with your trading!