Archives for October 2022

A fairly tight trading range before the U.S. session, then a uniform move across the majors as the DXY moved lower and lower.

A long was taken in the EURUSD risking 20 pips for a potential 79 pips to our daily target at .9953.

The move was vertical so we tightened our profit stop with each candle and kept an eye on the move of the other majors. Price moved through our target and we tightened our profit stop even more, and it was hit for a few extra pips.

.9900 which had acted as resistance yesterday may get retested as support over the next trading day as may par on further USD weakness.

Wednesday brings the closely watched U.S. New Home Sales release and the Bank of Canada Interest Rate Decision… which is expected to be another large increase.

Good luck with your trading!

The Asian session saw the EURUSD move lower and as the U.K. traders began their day, breakout shorts were tricked, and the pair briefly moved higher taking out stops. A second test of the Asian low found some buyers for one candle which was followed by a bearish engulfing candle and a close beneath the Asian session lows. A short was taken risking 18 pips for a potential 53 pips to our daily target at .9763.

Price tested yesterday’s low for an hour after our entry, before descending to our target where the trade was closed.

Thursday will be an eventful day on the economic calendar.

Good luck with your trading!

The GBP pairs have been very active since PM Liz Truss came to power. Last week she fired her Chancellor of the Exchequer. On Friday, the Bank of England’s emergency bond buying program ended. The newly appointed Chancellor of the Exchequer, Jeremy Hunt is trying to prevent further damage to the GBP. The Conservative Party is scrambling to determine what is next for PM Truss, who has severely damaged the strength of the country’s currency and investor confidence.

Needless to say, the GBPUSD has been very volatile of late and today with a very weak USD, to begin the week, the pair made a series of higher lows and a long was taken early in the U.S. session overlap – risking 28 pips for a potential 88 pips to our daily target at 1.1401.

The pair moved higher on this light economic release trading day. The USD continued to weaken through the session and the major pairs, with the exception of the JPY, traded higher against it.

We protected our profits as price continued higher – especially as price moved above our daily target. The first pullback from above our target closed the trade. Keeping stop losses and profit stops tight on countertrend trades is very important as they can end abruptly. This is especially true of the higher octane GBPJPY.

Good luck with your trading!

The GBPUSD moved lower today early in the U.K. session. It pushed beneath its Asian session low, retested the level but failed to close above it. A short was taken after the bearish engulfing candle, risking 30 pips for a potential 164 pips to our daily target at 1.1123. The GBPJPY made the same pattern as the GBPUSD once again. The Initial Jobless Claims release sent the pairs higher for one candle as did the opening of the U.S. equity markets… then the downward trend continued.

A major surge lower occurred in the last 15 minutes of the U.K. session and we exited the trade at the close, just above our target. If it had been the USDCAD, we would have waited a little longer, but not with the GBP.

Friday traders will be very attentive to the NFP release and we will look for either USD strength or weakness immediately following. Be careful in the meantime.

Good luck with your trading!

The volatility in the GBP is not likely to dissipate soon. Both the GBPUSD and GBPJPY moved in tandem downward today with the recovery of the USD.

The GBPUSD was unable to close above yesterday’s high during its Asian session and the U.K. traders began their day pushing price lower. After a very brief pullback testing its Asian session low, the pair failed and a short was taken risking 28 pips for a potential 194 pips to our daily target at 1.1214.

The pair dropped almost 80 pips going into the U.S. session overlap where a number of economic releases were pending. We locked in a nice profit and waited. Price moved lower going into the European close, then began to bounce without hitting our daily target. The trade was closed at our profit stop about half an hour before the U.K. close.

If the pair can take out the 1.1200 figure and the USD continues to be strong, a test of the1.0900 area is quite possible. Conversely a move above 1.1500 with USD weakness could test 1.1750.

Keep an eye on the DXY and GBPJPY for direction.

Good luck with your trading!