Archives for July 2021

The Federal Reserve statement on Wednesday resulted in further USD weakness and this carried through today as the DXY moved below 92.00.

As the USDJPY came off its New York high, a short was taken risking 15 pips for a potential 36 pips to our daily target at 109.40. The pair moved lower testing briefly its Asian session low before moving down to 104.50 where it failed to close below, as the U.K. session came to a close. With long lower wicks forming as the U.K. close approached, we tightened our profit stop and the trade was closed.

Friday will be a busy day for economic releases for Europe, Canada and the U.S.A. Be careful of volatility near the release times.

Good luck with your trading!

The financial markets are concerned about a broad-based regulatory crackdown in China which sent equity markets downward around the world today. The USD was unable to benefit from the declines while the Euro made another run above 1.1800.

A long was taken early in the U.K. session risking 11 pips for a potential 41 pips to our daily target at 1.1821.

Our first target to get through was the Asian session low, followed by the 1.1800 figure, the Asian session high, yesterday’s high and finally our target price today. We were fortunate to be out of the trade in advance of the U.S. equity markets opening and the U.S. home sales release for June.

Summer trading continues to be most active in the GBPUSD and USDCAD of the majors.

Good luck with your trading!

The USDCAD started the U.K. session moving down to test its Asian session low before moving higher to test the 1.2700 figure. As the U.S. session got underway, price moved lower with momentum and a short was taken risking 22 pips for a potential 62 pips to our daily target at 1.2610.

The pair made a solid move lower through our target and we protected our profits by tightening our profit stop with each candle. The trade was closed at the U.K. close as the move looked over-extended. With this pair leaving the trade open after the U.K. close for 2 or 3 hours is fine, but only when it has more room to run than it did today. The pair tends to move the most during the North American session unless oil is very topical.

Not surprisingly after the equity sell-off on Monday, the DXY was softer today as equities have now recovered the past two sessions. The test above 93.20 for the DXY is 93.47 and to the downside 92.80 and 92.50.

USDCAD and GBPUSD continue to be the two active pairs in the majors and most fun to trade.

Good luck with your trading!

As the U.K. continues to lift covid related restrictions, the delta variant case numbers are increasing there and Prime Minister Johnson is reported to have entered into isolation protocol. Naturally this doesn’t bode well for the GBP.

A short was taken today early in the U.K. session after a lower high formed… risking 22 pips for a potential 61 pips to our daily target at 1.3586.

Price continued lower with a brief two candle pullback just before the U.S. session got underway, then continued lower to our target where we exited.

The GBPUSD and USDCAD continue to be my current favourite pairs to trade. I haven’t been posting recently because I haven’t had any trades that have run until today. Most trades of late have only been in the 10-20 pip range. These trades add up over time, but are not too exciting to chart or learn from.

The USD continues to move higher since Fed Powell’s hawkish comments in June. A continued move higher in the DXY could test the November 11, 2020 high of 90.20

Good luck with your trading!

Today the GBPUSD moved higher going into the U.S. open. Similarly to yesterday, it then reversed with a large bearish engulfing candle and a short was taken risking 19 pips for a potential 71 pips to our daily target at 1.3752.

Price moved lower to test its Asian session high and remained just beneath this level awaiting the JOLTs job openings release. The result moved the pair through its Asian session low and yesterday’s low. As price continued down we protected our profits by moving our profit stop lower.

We fell just short of our target price with a candle leaving a long lower wick. We closed the trade to avoid any retracement going into the last candle of the European session… which can be volatile especially when an FOMC statement is pending.

Whether the USD strength continues will be determined in part by Fed Powell’s statement today. In particular any hints of tapering, interest rates hikes and changes to the Fed’s inflation outlook.

Good luck with your trading!

The GBPUSD made a move lower to test its Asian session lows early in the U.K. session, then reversed upward. As the U.S. session got underway, it made its pullback high around 1.3874… followed by a large bearish engulfing candle.

A short was taken risking 15 pips for a potential 39 pips to our daily at 1.3821. Price moved down to its Asian session low and was able to close beneath it. As price approached our target it accelerated through it and we moved our profit stop lower to protect our targeted level. Price continued lower down through yesterday’s low and long lower wicks began to form as buyers entered near the 1.3800 figure. We moved our profit stop to the 1.3800 figure and the trade was closed on a retest.

Traders will be paying attention to the U.S. JOLTs job openings number tomorrow early in the U.S. session and the FOMC minutes, 2 hours after the London close.

Good luck with your trading!