Archives for October 2021

Taking advantage of Fed Powell’s remarks, coupled with a tight stop loss, a long was taken in the USDCAD risking 8 pips for a potential 38 pips to our daily target at 1.2390.

Although the market has been anticipating the stimulus taper to begin this year and end mid 2022, any specific timeline for a rate hike next year is still an unknown despite inflation appearing to be more than “transitory”.

The immediate reaction to Chair Powell was a move higher in the USDCAD and the trade was closed at the U.K. close for a quick profit.

Enjoy your weekend and good luck with your trading!

The GBPUSD moved lower in the first half of the U.K. session after Britain’s CPI and PPI economic releases missed expectations. With the USD weaker again today, a long was taken risking 15 pips for a potential 63 pips to our daily target at 1.3830.

I wasn’t comfortable taking a 25 pip stop loss beneath structure today, so if the pair moved against me by 15 pips the trade would have closed. The pair had upside momentum on the 15 minute chart at the time of entry, but it also had some technical resistance levels to get through… which it managed to do as the USD faltered.

We closed the trade at the end of the U.K. session about 10 pips shy of our target.

Thursday will have the EU Leaders Summit and there are some important economic releases early in the the U.S. session to be aware of.

Good luck with your trading!

A bearish session for the USD today and a short was taken in the USDJPY risking 20 pips for a potential 57 pips to our daily target at 113.03.

The USDJPY had been a very quiet pair with a tight daily range all summer. In the third week of September, it began to move higher, with one pullback before pushing higher to the 113.50 level. This has gotten the attention of traders as its daily range has increased considerably since this last move above 110.00.

Today as the U.S. session got underway the USDJPY made a very brief move above its Asian session high then immediately began to move lower. Sellers remained in control until the 113.30 level where buyers entered and we closed the trade at the Asian session low.

On Thursday, U.S. initial jobless claims and PPI numbers will be closely watched.

Good luck with your trading!

The USDCAD continues to be a rewarding pair to trade, along with its crosses and the GBPUSD.

A short was taken today immediately after the Canadian Ivey PMI release risking 18 pips for a potential 75 pips to our daily target at 1.2498 (not shown).

The idea was to take advantage of the “risk on” sentiment and the softer USD today. Similar to what has been mentioned in a previous post, I prefer to short the pair when it sets up and keep an eye on the 1.2550 sticky level. If it attracts more sellers there… I will stay in it and if not I will protect profit.

The pair moved lower and resisted taking out the 1.2550 level at first – which is to be expected. Regardless of your intended target, be aware of the 1.2520 and 1.2500 levels where buyers are likely to appear.

Today when price went through the 1.2550 level, it left a long lower wick. The following candle price attempted to push lower and when it moved up to the low of the previous candle, the trade was closed before it could retest the mid-figure.

The GBPUSD was also a nice trade today.

Tomorrow will be the monthly NFP release and sentiment is widely bullish. If I see an opportunity, I will trade it and if not, I will be back on Tuesday looking for trade setups.

Monday is Thanksgiving Day holiday in Canada and Columbus Day in the U.S.

Good luck with your trading!

Oil continued higher today and after the U.S. session got underway, the DXY backed off its highs as the equity markets moved higher. A short was taken in the USDCAD risking 25 pips for a potential 55 pips to our daily target at 1.2516. An earlier long trade in the CADJPY was also taken (not shown) as the Canadian dollar was the strongest currency and the Japanese yen was the weakest currency of the majors.

The USDCAD moved progressively lower but not with the momentum I had expected – given the strength of the CAD today. This pair tends to become quite sticky around figures and mid-figures – often reversing. As the pair penetrated the 1.2550 level and immediately came back, the trade was closed for modest pips.

If oil continues higher, watch the 1.2500 figure, 1.2450 and especially the 1.2420 levels to the downside.

Good luck with your trading!

The USD was weak to begin the trading week. Oil was strong and the OPEC meeting didn’t produce any surprises.

A short was taken early in the U.S. session risking 22 pips for a potential 44 pips to our daily target at 1.2549.

Price moved lower and our trade was closed as price began a retracement higher. Mondays tend to be tricky days to trade but this trade set up well and moved quickly.

It’s another busy week of economic news releases culminating with the NFP on Friday.

Good luck with your trading!