Archives for March 2021

As commodities continue to rise at this stage of the economic growth story, traders can look for setups in the CAD, AUD and NZD pairs. With oil performing very well this year and 70 percent of Canadian exports going to the U.S., the USDCAD has been very active as the U.S. economy recovers.

Today after the positive employment economic release for Canada, the pair set up with a third lower high in the U.S. session overlap. A short entry as price moved beneath the previous bullish candle approaching yesterday’s low required a stop loss of 15 pips for a potential 37 to our daily target at 1.2483.

Price continued lower as it had since testing its Asian session high early in the U.K. session. Price had already been lower than yesterday’s low three times since the U.S. open and moved down to test these lows again for any buyers. It then moved down to test the 1.2500 figure. Our daily target was reached and price moved lower still going into the U.K. close.

The 1.2500 figure is a big psychological number to penetrate, so a retest next week is very possible.

The markets remains choppy as traders contemplate the impact of rising bond yields versus buoyant equity markets and vaccine availability worldwide.

Good luck with your trading, stay healthy and enjoy your weekend!

The USDCAD moved higher early in the U.S. session overlap but could not close above yesterday’s low. A short was taken risking 18 pips for a potential 62 pips to our daily target at 1.2532.

Price moved lower testing and retesting its Asian session low, down to its daily low and further toward our target. The trade was closed at the U.K. close.

On Friday there is lots of economic releases pending. Be careful trading around the volatility.

Good luck with your trading!

The USD experienced selling pressure today while the GBPUSD oscillated up and down in a fairly tight range during the first half of the U.K. session.

A long entry was taken after the pair made a third higher low and began to move higher in the U.S. session overlap. Price climbed higher taking out its high of the day and continued up to our daily target at 1.3908 and did not retest the 1.3900 figure. Our next target was a significant barrier from the hourly chart today at 1.3921 where price penetrated but could not close above.

Further upside targets would be 1.3932, 1.4018, 1.4048, 1.4063, 1.4089 and 1.4107 areas.

Downside moves could test 1.3775, 1.3760, 1.3739, and 1.3718 areas.

Good luck with your trading!

Firstly a big thank you to Travis for letting me know the site had briefly disappeared. A quick call to the webhost resolved the issue.

USD bears may be reconsidering their positions after the very bullish NFP number today. Today there was nothing that appealed to me… a lot of back and forth price action going into the weekend.

On Thursday the GBPUSD set up for a long early in the U.S. session overlap. A long was taken risking 17 pips for a potential 78 pips to our daily target at 1.4039. Price rose slowly through its Asian session high and retested this level for some time before running into sellers where it had the previous day. Price tried to climb higher to take out the 1.4000 big figure and sellers emerged, We closed the trade at the previous day’s high,

On Wednesday it was the EURUSD that caught my attention. This was a classic wash and rinse of breakout traders. Price dipped below its Asian session low early in the U.K. session luring in breakout short traders then reversed to test its Asian session high, luring in breakout long traders.

Price failed above its Asian session high and a short was taken risking 14 pips for a potential 78 pips to our daily target at 1.2022. As the pair moved lower we allowed for a retest of the previous day’s high, the Asian session low and protected our profit going into the U.S. session. Fortunately price dropped at the U.S open and we protected half of that move lower. Price retraced half of previous candle triggering our profit stop.

Some levels to keep an eye on next week for the EURUSD and GBPUSD:

EURUSD

Above 1.1900 – 1.1915/1.1925, 1.1979, 1.1991, 1.2000, 1.2022, 1.2054, 1.2068, 1.2082, 1.2095

Below 1.1900 – 1.1885/1.1895, 1.1845, 1.1836, 1.1816, 1.1800, 1.1758, 1.1745, 1.1710

GBPUSD

Above 1.3800 – 1.3830/1.3840, 1.3900, 1.3907/1.3917, 1.3938, 1.3967, 1.4000

Below 1.3800 – 1.3776, 1.3761, 1.3731/1.3741, 1.3718, 1.3700, 1.3680, 1.3663

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