Archives for October 2020

Today’s trading turned out to be more subdued than I had expected. Today is month end and the Friday before the U.S. election. The USD had a good week while U.S. equities dropped.

A EURUSD short was taken today as priced failed to stay above its Asian session high, risking 20 pips for a potential 54 pips to our daily target at 1.1630.

The trade was as exciting as watching paint dry until the last half hour of the European session when it finally moved lower.

Hopefully by the end of next week we will know the result of the U.S. election.

Enjoy your weekend, stay healthy and good luck with your trading!

It’s been an interesting and active week for the financial markets as we get closer to the U.S. election.

I haven’t been comfortable taking any trades this week until today. Patience is often rewarded in trading and impulsive and undisciplined trading is frequently punished.

The continued strength today in the USD made multiple pairs tradeable but the key is not to be too greedy. Fear and greed are a trader’s worst enemies.

As the GBPUSD moved lower after testing its Asian session high, a short was taken risking 25 pips for a potential 75 pips to our daily target at 1.2926. This trade had downside momentum and continued downward going into the U.S. open. After the pair breached our target as the equity markets got underway, it was closed when it retraced with some volatility.

The EUR, JPY and CAD also had nice setups today.

My charts usually indicate the UK open and close, but this week with the time change which will be resolved this weekend, I have left the charts alone and they are indicating the European trading session, which begins and ends an hour before London.

Keep your seatbelts fastened as we await the election results. There are a lot of opinions as to which direction the markets will move based upon the election results… once known. Do your own analysis and trade what you see not what an analyst/writer forecasts.

Good luck with your trading!

On Monday the USD started the week moving lower and this continued today.

A short was taken in the USDCAD after the U.S. news, risking 13 pips for a potential 45 pips to our daily target at 1.3139.

Price moved lower taking out its Asian session low, yesterday’s low and continued right through our daily target for bonus pips. We locked in profit throughout the move lower and closed the trade on the first sign of a move upward – beneath our daily target.

Yesterday the market gave very conflicting signals which caused me to wait on the sidelines. Expect volatility to continue with some big unknowns out there, including the Brexit outcome, the U.S. election results and when the rising corona virus infection rate will abate.

Always limit risk exposure.

Good luck with your trading!

The USD strength began to pick up early in the session and a long was taken in the USDCAD risking 10 pips for a potential 30 pips to our daily target at 1.3199.

The pair had already broken above its Asian range once and pulled back. It closed above this range again as the USD began to gain strength. The pair moved quickly to our daily target where the trade was closed.

As it turned out, the pair would double its range after we closed the position.

There was lots of movement overall today, but only one comfortable entry for me as the risk off sentiment drove the USD higher.

Good luck with your trading!

The USDJPY set up nicely for us today. A short was taken risking 5 pips for a potential 33 pips to our daily target at 105.09. This trade had a great risk/reward ratio and it’s difficult to find trades where risk can be this limited. A confluence of reasons made this trade irresistible.

As price moved lower, we locked in profit and the trade was closed as our daily target was reached just above the 105.00 figure. The USDJPY has not been trading large ranges, but it has been trading to the psychological round numbers and mid-figure levels with consistency for some time now. These are not levels to be greedy near.

Trading is likely to remain actively back and forth until Brexit, the U.S. election and the Covid virus concerns are behind us.

Good luck with your trading!