Archives for December 2020

The currency markets are known to be volatile and during the final days of the ongoing saga of Brexit negotiations, the GBPUSD is extremely volatile. Be careful above 1.3500.

The EURUSD is also suddenly volatile at unusual times of the trading day. If you look at its movement Friday, Monday and today, someone was buying USDs and down it went each day with similar smaller moves in other majors. With the market quite short the USD, this is intriguing.

Having missed a nice setup Monday, on the GBPUSD… not wanting to start the week with a potential 30 pip loss, and missing out on a move that extended beyond 70 pips, I decided to risk 15 pips today for a potential 57 pips to our daily target at 1.3443.

Unusual activity was seen again, just after the European markets closed – up surged the GBP. We saw an instance of this type of move last week as well.

All eyes will be on the Fed tomorrow and a dovish tone could move the EURUSD over 1.22. Many seem to like the pair over 1.20 but I prefer the USDCAD short setups – especially with oil moving higher.

As the holidays approach there will be less liquidity especially near month end. Keep stops tight and be selective as always.

Good luck with your trading!

There is still no sign of a Brexit deal. The E.U. Summit begins tomorrow along with the ECB Monetary Policy Statement and Interest Rate Decision.

After moving up in the Asian session the EURUSD reversed in the European session back down to 1.2100. It briefly retraced going into the U.S. session before running into sellers at 1.2123. A short was taken after the double top and continuation lower – risking 15 pips for a potential 32 pips to our daily target at 1.2077.

The EURUSD continued lower and we closed the trade at our target. Although PM Johnson will be dining in Brussels tonight, contentious issues remain and he has stated that walking away without a deal is “okay” too… if an agreement cannot be made. Expect more twists and turns as negotiations continue in the meantime.

The GBPUSD remains very volatile and if one is inclined to trade it, tight stops and locking in profits quickly is a sound tactical strategy.

Good luck with your trading!

The last month of the trading year is here. We believe we know who won the U.S. election but still await President-elect Biden’s certification.

What we don’t know for sure is when Brexit will be resolved (hopefully by year end) and how the new President of the United States will handle the tense relationship with tariffs and China. We await the U.S. Stimulus Package as politicians continue to bicker on this side of the Atlantic as they do on the other side of the Atlantic.

What is notable is the DXY broke down through 92.00 and is now down testing 91.00. The EURUSD broke above 1.2000 and has now tested 1.2100. The GBPUSD is producing some very large moves in single candles at odd times of the day both yesterday and today. An eventual Brexit deal could either pop the GBPUSD to test 1.3500 or be a case of ” buy the rumour, sell the news” and we see it fade?

Today, a short setup was found in the NZDUSD risking 11 pips for a potential 25 pips to our daily target at .7039.

Although this is a countertrend trade, it had downside momentum as it moved to test its Asian session low. When it broke through this level the momentum continued past our target which we quickly protected. We then managed to capture a few more pips before a retracement began going into the U.S. session.

Trading has been slower than usual and the GBPUSD action has been quite erratic. Certainly the last few days of November made for volatile trading.

We have a couple more weeks of trading before things slow down for the holidays.

Trade carefully and be disciplined.

Good luck!