Archives for April 2021

Waiting on Federal Reserve Chair Powell and long the GBPUSD today

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A bit of back and forth price action as the markets prepare for the FOMC and month end.

The DXY continues to be on its back foot… bearish below 91.00.

A long GBPUSD was taken early in the U.S. session after a higher low as price moved up into its Asian range – risking 17 pips for a potential 58 pips to our daily target at 1.3937. We locked in profit as the trade continued upward. Price cleared its Asian high but ran into sellers near yesterday’s high and our trade was closed.

The USDCAD was another great trade setup today.

It’s interesting currently seeing U.S. equities selling as quarterly earnings reporting continues. The USD however has not benefitted and neither have bonds.

Good luck with your trading!

Long the USDJPY during choppy trading of the majors today

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It’s month end this week and trading can be choppy especially when combined with Jerome Powell and the FOMC statement on Wednesday.

Today a USDJPY long was taken as the pair continued to stay above 108.00. – risking 11 pips for a potential 26 pips to our daily target at 108.58 early in the U.S. session overlap.

Although this pair has not been nearly as active as the GBPUSD or USDCAD of late, it managed to climb to our target and then some… after we closed the trade at the U.K. close.

The U.S. economic data continues to be very positive overall and the infection rate continues to drop as more and more Americans are vaccinated. With the DXY closing below 91.00 since Friday, the picture remains bearish at the moment for the dollar as we will await the outcome of the FOMC tomorrow.

Good luck with your trading!

Long the USDJPY after reversal early in the U.S. session overlap

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The risk sensitive USDJPY moved lower in the first half of the U.K. session, finding a bottom just beneath 107.50 then it began to move higher early in the U.S. session. A long was entered after a reversal pattern risking16 pips for a potential 37 pips to our daily target at 107.99.

Price was able to retrace its entire daily move lower as we exited the trade at our daily target.

The DXY which has been holding a technically important level just above 90.00 this week was not able to today and finishes the week bearishly.

Next week traders will be watching the Bank of Japan on Monday and the FOMC outcomes on Wednesday.

Good luck with your trading and enjoy your weekend!

Shorting the GBPUSD as the DXY continues to bounce from technical support just above 91.00

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The GBPUSD moved lower early in the U.K. session, leaving a second lower high for the day. Buyers emerged just above yesterday’s low and the pair began a retracement higher. When it began to move down again it left a third lower high for the day. A short was taken risking 16 pips for a potential 52 pips to our daily target at 1.3848.

We locked in profit before the U.S. session overlap and closed the trade when it reached our target.

Good luck with your trading!

Shorting the USDJPY as currency flows move to the yen today

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There was very little economic news today and the USD tried to bounce at a technical level just above 91.00

Equity markets were moving down from their recent highs and currency flows – typical of the “risk off” environment moved to the yen.

A short was taken in the USDJPY after it made a third lower high in the U.K. session risking 10 pips for a potential 45 pips to our daily target at 107.96. Price moved lower for the balance of the U.K. session overlap and we exited the trade at the London close. Yen crosses moved lower too, with commodity currencies being particularly vulnerable to the downside.

The DXY has moved down since its March 31st rise to 93.45 and currently rests just above a technical level near 91.00. A close below 91.00 could see the 90.47, 90.00 and 89.73 levels tested. Continued closes above 91.00 could see the index test the 91.50 area and 92.00.

Good luck with your trading!

A small bounce in the DXY today and a long USDCAD trade was taken following the economic news

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The DXY had moved down for three straight days this week, so it was not surprising to see retracement trades set up today. After some some disappointing Canadian news and very positive U.S. economic news, a long USDCAD trade was taken risking 13 pips for a potential 38 pips to our daily target at 1.2552.

The pair had found a bottom and was moving higher in advance of the U.S. session overlap. With lots of economic news pending, patience was important. After a pullback and reversal pattern, the pair was able to move up and test its Asian session high. We moved our profit stop just below this level and when the pair reached our target the trade was closed.

Tomorrow, going into the weekend, we may find this pair testing the familiar 1.2600 area – where it has struggled or with USD weakness – testing the 1.2400 area.

Good luck with your trading!