Archives for April 2021

Shorting the USDCAD as the DXY continues lower for a third day in a row

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The commodity currencies were particularly strong against the USD today and with WTI up, a short was taken in the USDCAD.

An earlier entry would have been ideal, but once the pair had downside momentum today, a trade was taken risking 11 pips for a potential 50 pips to our target at 1.2499. After the entry, the pair moved lower through its Asian session range and yesterday’s low. We exited the trade at the U.K. close – about 15 pips above our target. Had I been able to watch the trade following the London close, I would have kept it on.

If the DXY continues lower for a fourth day tomorrow, the pair could test 1.2475, 1.2449, 1.2413 and 1.2400

A move higher could test 1.2627, 1.2646, 1.2675 and 1.2700

Good luck with your trading!

A stronger EURUSD and weaker GBPUSD creates a long opportunity in the EURGBP

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As the U.S. session overlap got underway, the DXY continued to move lower today. With the EURUSD moving higher and the GBPUSD moving lower, it was clear a long EURGBP position would be tactical.

An entry was taken risking 12 pips for a potential 41 pips to our daily target at .8679. Price was able to move higher to close above its Asian session high, then on to test the interim swing high from earlier in the U.K. session. As we went into the European close, price stalled and we place our profit stop just above yesterday’s high. The next candle closed the trade.

If the pair continues to move higher, .8700, .8725, .8750 and .8780 are areas to watch. To the downside this pair could retrace back to .8500 and .8472.

Good luck with your trading!

Long the EURUSD as trading resumed for us after an extended Easter long weekend

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A nice start to the trading week. There were several nice trade setups today to take advantage of with a weaker USD.

A long was taken early in the U.S. session overlap risking 15 pips for a potential 38 pips to our daily target at 1.1855. The trade had momentum moving higher without any significant retracements. The trade was exited at the London close, a few pips short of your goal.

With continued USD weakness the pair may move higher to test a significant barrier in the 1.1880 region before testing the 1.1900 figure.

Good luck with your trading!

Long the GBPUSD with the DXY decline in advance of Friday’s NFP number

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As we start the new month the USD is moving lower in advance of Friday’s NFP number.

A GBPUSD long was taken risking 15 pips for a potential 47 pips to our daily target at 1.3829. Price found a bottom early in the U.S. session overlap then began to move higher. As it did, we locked in profit and when long upper wicks began to form, we locked in more profit. Price retraced enough to close our trade before continuing to our daily target without us.

Tomorrow will be interesting as the NFP number is released while many traders will be off for the Easter long weekend holiday.

Good luck with your trading, enjoy the holiday and stay healthy!