Archives for February 2021

The GBPUSD could not sustain above its Asian session highs today. After the U.S. economic releases, the pair appeared to be rolling over and moving lower. This was despite the USD being weak today. Correlations were not very useful but a risk of 19 pips for a potential 83 pips to our daily target at 1.4069 was very attractive, so a small position was taken.

Price continued lower and we closed the trade well short of our daily target at the close of the U.K. session. If price can continue lower and get beneath our target, then it may test the mid figure 1.4050 level for buyers, but expect a bounce at 1.4000 as GBP bulls take advantage of the pullback.

Good luck with your trading!

The recent rise in the GBPUSD makes one cautious when it comes to shorting the pair. After 4 lower highs today in advance of the U.S. session overlap a short was taking risking 16 pips for a potential 38 pips to our daily target at 1.4100.

The idea was to take advantage of the GBP pullback and to not get stopped out of the trade by the pending economic releases in the U.S. session. Fortunately price moved lower to test the figure, which was also our target and we exited the trade in advance of the New Home Sales and Powell’s second day of testimony on the U.S. economic outlook.

Good luck with your trading!

A fairly simple trade to begin the trading week. During the U.S. session overlap the AUDUSD moved higher, pulled back for a two candles and moved higher off its trendline.

A long was taken risking 12 pips for a potential 25 pips to our daily target at .7917 – the March 2018 high. Price moved up to our target take profit level closing the trade.

A continued move higher may test .7934, .7988 and .8000 round number. A move lower may test the .7900 round number followed by .7885, .7850 and .7820.

The Bloomberg Commodity Spot Index is up 30% and Brent crude is up over 20% but the commodity currencies have not surged anywhere near. I have found the CAD and AUD pairs to be very tradeable lately, but have not had the time to post many of the trades. They are certainly worth keeping an eye on at this stage of the economic cycle.

Good luck with your trading!

The USD has been showing strength versus the JPY since rebounding from a test of 104.40. Today the test would be the 105.50 level that would be telling.

After initially moving lower early in the U.K. session the pair reversed higher and a long was taken risking 14 pips for a potential 36 pips to our daily target at 105.67. Price moved higher going into the U.S. session overlap gaining momentum. We protected our profits as the pair moved higher, as we did our daily target at 105.67 once reached and the trade was closed.

The next levels above to keep an eye on include: 105.77, 106.00, 106.25 and 106.56. A move below 105.42 could move down to test: 105.26, 105.00, 104.91, 104.64 and 104.55.

Of the economic new releases pending, be cautious trading in advance of the ECB monetary policy statement and there will be lots of U.S. and Canadian news on Wednesday.

Good luck with your trading!

The USD continued higher today and gold continued its move lower.

A short was taken in the AUDUSD risking 11 pips for a potential 43 pips to our daily target at .7575 (not shown).

Price moved lower stopping at the .7600 figure where it found some buyers, then moved lower before retracing 10 pips going into the European close where our profit stop was hit.

Tomorrow be cautious trading in advance of the NFP release for January in the U.S. and the Employment Change for January in Canada.

The EURUSD closed well beneath the critical 1.2000 level today. It will be interesting to see how the USD finishes the week.

Some important downside levels for EURUSD bears to watch for include 1.1945, 1.1900, 1.1800, 1.1695, 1.1604. 1.1495.

A move higher above 1.2011 could test 1.2054, 1.2100, and 1.2190.

The vaccine progress in the U.S. and U.K. has been giving their currencies an advantage over the Euro.

Good luck with your trading and stay healthy.