Michael Bridgman

A big day of economic news.  The Greece situation is not resolved and hence the EUR continues to weaken.  BOE Governor Carney is sounding upbeat this week and Janet Yellen is sounding hawkish.

There remains potential for extreme volatility with the EURUSD and overall sentiment is very bearish at the moment.  This is not an issue that will quickly resolve itself despite the pending outcome of Greek parliamentary vote today.

Slow and steady makes more sense today than being aggressive.  The EURGBP is trending nicely and offered a very small stop loss as it began to sell off today.  With a 10 pip stop loss we entered short and kept our profit stop tight as price made its way down through the levels.  We had hoped that price would at least test the .7000 big figure… but it wasn’t to be and we closed the position at the UK Close for modest slow and steady gains.

 

Good luck with your trading!

Back tomorrow if we find a trade.

 

 

The EUR continues to be the focus for many traders.  It had a  very short lived rally today before it rolled over after the U.S. news.  An entry short is taken with an initial 25 pip stop loss.  As price moved back down toward the Asian session high, we tightened our profit stop to get the risk out of the trade. Price descended further but bounced near yesterday’s low and the 1.1000 big figure. We lock in our gains and the reversal takes us out before the UK close.

 

If price continues downward… last week’s low in the 1.0915 area and May’s low in the 1.0820 area will be areas to observe for how price reacts.

Good luck with your trading!

Back tomorrow if we find a trade.

This is a trade from Thursday, not today.

An hour before the U.S. Open the USD begins to fall against the Canadian dollar.  As price reaches both the Asian session low and yesterday’s low, buyers enter leaving a very long lower wick.  Price pushes down and closes at the Asian session low, then manages to close below yesterday’s low.  As the US session gets underway, we see another long lower wick and price tries to climb above both yesterday’s low and the Asian session low.

Despite a disappointing U.S. Unemployment Claims number and WTI moving up – the USD catches a bid tone.  As it closes strongly above the Asian session low, we enter long with a 20 pip stop loss for a potential 62 pips to our Target 2.

Price retests the Asian session low, then begins to move higher.  As it does …we tighten our profit stop and watch a full reversal unfold.  As price makes a Double Top for the session and is showing long upper wicks, denoting sellers entering… our tightened profit stop is hit.

This is a classic example of “trade what you see…not what you think”.  It seemed odd that after a disappointing unemployment release and WTI bouncing upward that the USD would strengthen to the CAD as it did.

The Greece situation will continue to unfold this weekend.  The EUR 110.00 Big Figure remains significant to any larger downside move.  Be very cautious around this area.

Today, I couldn’t find any trade setups that I liked.  Congratulations if you did.

Good luck with your trading and enjoy your weekend!

Back Monday to check in on the Greece/ECB impact to the markets and will post if a trade is found that we like.

 

Some pessimism in advance of Chancellor Osborne’s budget release pushed the GBP lower.  As it retests the Asian low and closes below yesterday’s low, a short entry it taken with a greater than 3:1 R/R to our Target 2.  Price is slow to descend but doesn’t show any signs of strength.  It gradually moves down near our Target 1 and leaves 2 candles with long lower wicks as buyers enter.  On the next candle our profit stop it hit and we are taken out in advance of the budget announcement.

We will have Janet Yellen speaking later today which is always of interest.

Good luck with your trading!

Back tomorrow if we find a trade.

Oil has been dropping since the Greek referendum.  As the USD strengthened during the early UK session a long CAD trade is taken.  This pair tends to react to the price of oil and with oil continuing to drop and the USD showing strength versus the majors (with the exception of the JPY)… a long is taken.  This pair is trending very nicely.  Although I would like a 3:1 R/R, I will take a 2:1 R/R today and hope that it picks up momentum once the US session gets underway, as it typically is most active then.

As the economic news releases for both countries approaches, we tighten our profit stop and hope for an extended surge to the upside.  Price rise above our Target 2 after the news but quickly pulls back and we exit at T2.

EUR may close below the important 1.1000 big figure today.  As the Greece story continues to unfold, be very aware of the potential for volatility.

Good luck with your trading!

Back tomorrow if we find a trade.

 

The Asian session was very active as the new week began and the EUR had gapped down from Friday’s close.  Price continued to rise after the UK open but ran into sellers above the Asian session high.  Price rolled over and as it did… a short trade is taken with a 25 pip stop loss for a potential 96 pips to the Asian low.  Price continued pushing down until the US session began…where it found buyers and reversed once again up to the Asian session highs one more time.

With June behind us and the Greece/ECB situation still as yet unresolved, the market remains very focused on the EURO pairs.   This could be a very interesting week for the currency markets.

Be cautious of your entries, keep your stop losses tight and protect your profits!

Good luck with your trading!

Back tomorrow if we find a trade.