Michael Bridgman

Sentiment is USD bullish once again this week…so far.

With the ECB bond buying picking up ahead of summer and positive US Building Permits and Housing Starts number came renewed USD strength.

A NZD short was found as the pair began to roll over early in the US session.  Our Targets 1 and 2 were .7282 and .7266 respectively.  The pair moved down but fell short of your targets as the market took a breather ahead of the FOMC.  We are closed protecting our profits just ahead of the European close.

 

One trader I spoke with took the identical trade on the NZDCAD pair.

Good luck with your trading!  Keep an eye on the USD and trade accordingly.

Back tomorrow if we find a trade.

 

As the US economic news releases continue to be soft, the USD continues to be sold off.  Trying to be too analytical about this gets in the way of nice trade setups and entries.  As an intraday trader it doesn’t make much difference anyway as long as the technicals produce nice setups with good R:R ratios.  Money management and being able to read price are keys to trading success – not analyst expectations.

As the UK session got underway, the USD strengthened.   After the EUR put in a double bottom early in the US session and began to move up, an entry long is taken.  Our first test will be how price reacts at the Asian session low or to the Prelim UofM Consumer Sentiment release.  We protect ourselves in advance, so the worst case scenario is we have a small profit.  Price goes vertical after the release for two candles and we blast through the Asian session high and Target 1 in a single candle.  Vertical moves are not sustainable so we protect Target 1 and our position is closed.

 

How the EUR reacts around the 1.1460 and 1.1500 figure will be very interesting to see.

The JPY also produced a nice short setup to trade toward the 1.1900 figure (not shown).  This pair is very range bound and appears to offer shorts toward 1.1900 and longs toward 1.2000 with caution around the 50 pip increments.

We will see next week what the sentiment is once again toward the USD.

Enjoy your weekend and good luck with your trading!

Back Tuesday if find a trade.

German 10 Year Bund yields continue to drive the EURUSD higher.  Apparently not all the USD long position traders have been flushed out. US economic data is a little softer than desired making for a slower economic recovery…but overall it is not bad…just a little slower than the markets like.

With some of Europe on holiday today and no economic news until the US session, we awaited for the move to follow.  As the NZD bounced off an important level today for the institutional position traders, we find a short entry.  With little time left in the trading session, we kept our profit stops tight and watch a familiar pattern complete.  We are taken out by the market just before the UK session ends for a modest gain.

Good luck with your trading!

Be very careful trading in this current market and keep your stops tight.

Back tomorrow if we find a trade.

 

After missing the big move yesterday and hoping for another one today, we waited for the UK economic news to pass.  An entry short is taken as price closes below the Asian session high with a 16 pip stop loss for a potential 62 pips to our Target 2.  When our profit stop is hit, we are taken out of the trade for 20 pips.  We wait 1 more candle and go long with the reversal and a 12 pip stop loss.  As price forms a hammer with a long wick above, we close the trade.  After the third red candle we re-enter short once more with a 15 pip stop loss for a potential 53 pips to our Target 2.  At the close of the UK session – we exit for the day.

Good luck with your trading!

Back tomorrow if we find a trade.

The EURGBP set up nicely as did a number of the majors today.

After rising to begin the UK session… the EURGBP made a double top and reversed lower.  With a 17 pip stop loss for a potential 64 pips to our Target 2 – we entered short with a stop above the session highs.  Price moved down and closed very bearishly below our Target 1.  As we attempt to get to Target 2 and fall just short…we give back 11 pips in the retracement to Target 1.

Tomorrow is a very important NFP for the markets!

Good luck with your trading!

Back Tuesday if we find a trade.

Be flexible, be nimble and use tight stops.  Trade what you see as this is a 2-way market in advance of Friday’s NFP.  We seem to be somewhat detached from the economic bigger picture at the moment.  Next week should be clearer.

The Aussie hourly chart turned bullish yesterday in agreement with the 4 hour chart.  The Daily chart is mildly bullish.

After a series of higher lows and yesterday’s high unchallenged, we go long with a tight stop of 15 pips for a potential 67 pips to our Target 2.  Price began to stairstep up… allowing for easy profit stop placement under structure.   As price reached out Target 1 – we allow a little wiggle room but close the trade when price closed below it.  One could easily have gone short a candle later with a 16 pips stop loss above the session high…but with an hour left in the session we did not.

Good luck with your trading!  Choose the best setups and keep your stops tight.

Back tomorrow if we find a trade.