Michael Bridgman

The institutions continue to expect dovish comments from ECB President Draghi and he continues to deliver.  The EUR daily chart indicates short is the direction and this may pick up momentum once 1.1100 gives way.  It is to the ECB’s advantage to have a weaker EUR and the market tends to oblige – particularly when it is not focused on China.

A very clear sell zone was evident above the 1.1234 area and it held well throughout the Asian session.  As the combination of Draghi’s press conference with the U.S. Unemployment Claims number and Trade Balance all due, the market was quite subdued while awaiting the outcome.  A stop loss just above the day’s high cost 17 pips.  Our Target 2 was 121 pips away.  Although always risky entering before news, with the very defined sell parameters from the larger charts and an excellent reward to risk ratio, a short is taken with the trend.

We are quickly rewarded and note the profit taking bounce at Target 1.  As price drops further we tighten our profit stop in hopes of getting to Target 2.  Price begins to move upward and we are taken out of the trade.  The 1.1100 area provided a triple confluence today and we expected a rebound had we attained it.

For those watching WTI – it once again set up beautiful trades in the USDCAD and CADJPY today.

Tomorrow is NFP Friday with all FED watchers on deck.  Be very careful as the volatility will likely be very high.  The easier move to catch is usually the reversal after the initial reaction to the print fades.  Never chase a trade.

Good luck with your trading!

 

A fairly straight forward EUR short today.  As price sold off each time it touched this important level from the daily chart, we place a stop loss 20 pips above our entry for a potential 107 pips to our Target 2.  When price settled and moved sideways at the Asian low, we placed our stop loss at plus 1 pip – knowing the market was awaiting the U.S. ADP number.  The EUR descends further after the release and we move our profit stop down accordingly.  After a large red candle we move our profit stop to halfway and we are taken out of the trade on a retracement candle.

More employment numbers Thursday and Friday.  The market will be scrutinizing the numbers looking for signs that the FED will or will not make the first interest rate hike this month.

Good luck with your trading!

Back tomorrow.

 

September is shaping up to be an exciting month!  Lots of economic news this month and with the possibility of the FED raising rates…traders will be looking for clues as to whether they will or whether they won’t.

The EUR has reason to remain under pressure, and as it reversed early session in classic fashion, a short was taken.  A 22 pip stop loss for a potential 122 pips to our Target 2.

As price moves down we allow for a retest of the Asian high… which also corresponded today to a very important level for institutional position traders – as seen on their daily charts.  Price descends further completing our first pattern and closes below it.  As price found buyers just below, we are closed at our profit stop placed at yesterday’s high.

The EURJPY has been a great pair to trade short of late and I will be posting trades going forward.

Good luck with your trading!

Back tomorrow if we find a trade.

The EUR was unable to rise and close above an important level from the Daily chart.  As it runs into sellers, we go short with a stop loss just above the session high.  A 23 pip stop loss for a potential 153 pips to our Target 2 is hard to resist…especially when trading in the direction of USD strength today.

Price predictably heads to the Asian session highs and pauses awaiting the US economic numbers.  As the USD strengthens the EUR descends through the Asian session lows where it pauses and retests the level taking us out of the trade just after Europe closes for the weekend.

Good luck with your trading!  Enjoy your weekend!

Back Tuesday if we find a trade.

EUR short setup early in the UK session.  With the markets very reactive to China this week, we look for the EUR to settle back to trend.  We take a larger than usual stop loss due to the larger ranges being made this week.  The short is taken with a 28 pip stop loss for a potential 107 pips to our Target 2.

With price being so volatile, we get the risk out early and move our stop loss to plus one pip.  As price moves down, we lock in more profits and want to be out of the trade before the U.S. economic releases.   We exit at Target 2 just in advance to the U.S. positive core durable goods release.

More U.S. numbers tomorrow.

Good luck with your trading!

Back tomorrow if we find a trade.

At a favourite time of the UK session, it was evident that the USD was weakening.  The USDCAD had a nice double top for the session and a  triple top for the past 24 hours.

As the other majors showed similar strength to the USD…  the CAD looked like a compelling short opportunity.  A stop loss is placed above yesterday’s high as we enter short.  The stop loss was 16 pips for a potential 116 pips to our Target 2.

In advance of the first US economic news release, we locked in profits by placing our profit stop at the Asian high to guarantee 20 pips on the trade. Price dropped after the unemployment print and then formed a wicky candle as buyers entered long.  We tightened our profit stop to just above the candle high and the subsequent candle closes the trade.

 

Good luck with your trading!

It’s been a quiet summer week leading up to the FOMC yesterday.  The Bloomberg issue was more interesting than the release itself.

Back tomorrow if we find a trade.