Michael Bridgman

Shorting the USDCAD as USD weakness persists today… without any stimulus package and two weeks to go before the election

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On Monday the USD started the week moving lower and this continued today.

A short was taken in the USDCAD after the U.S. news, risking 13 pips for a potential 45 pips to our daily target at 1.3139.

Price moved lower taking out its Asian session low, yesterday’s low and continued right through our daily target for bonus pips. We locked in profit throughout the move lower and closed the trade on the first sign of a move upward – beneath our daily target.

Yesterday the market gave very conflicting signals which caused me to wait on the sidelines. Expect volatility to continue with some big unknowns out there, including the Brexit outcome, the U.S. election results and when the rising corona virus infection rate will abate.

Always limit risk exposure.

Good luck with your trading!

Long the USDCAD early in the London session

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The USD strength began to pick up early in the session and a long was taken in the USDCAD risking 10 pips for a potential 30 pips to our daily target at 1.3199.

The pair had already broken above its Asian range once and pulled back. It closed above this range again as the USD began to gain strength. The pair moved quickly to our daily target where the trade was closed.

As it turned out, the pair would double its range after we closed the position.

There was lots of movement overall today, but only one comfortable entry for me as the risk off sentiment drove the USD higher.

Good luck with your trading!

Shorting the USDJPY as USD strength wanes today

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The USDJPY set up nicely for us today. A short was taken risking 5 pips for a potential 33 pips to our daily target at 105.09. This trade had a great risk/reward ratio and it’s difficult to find trades where risk can be this limited. A confluence of reasons made this trade irresistible.

As price moved lower, we locked in profit and the trade was closed as our daily target was reached just above the 105.00 figure. The USDJPY has not been trading large ranges, but it has been trading to the psychological round numbers and mid-figure levels with consistency for some time now. These are not levels to be greedy near.

Trading is likely to remain actively back and forth until Brexit, the U.S. election and the Covid virus concerns are behind us.

Good luck with your trading!

Shorting the GBPUSD on a day of USD strength

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Following the U.S. economic news releases today USD strength picked up. A GBPUSD short was taken risking 20 pips for a potential 45 pips to our daily target at 1.2966.

Price moved lower quickly and within 45 minutes the trade was closed as it reached our target.

The EURUSD was another nice short opportunity at the same time today.

A move down in the GBPUSD would likely test 1.2843 – the low from last week and a move higher will have to close above 1.3000 to be bullish.

The market continues to focus on any Brexit progress, new infection rates geographically and the U.S. election pending outcome on November 3rd.

Good luck with your trading!

Long the GBPUSD as the USD continues to drop and “risk on” sentiment continues

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A light news day and a very heavy USD which continued its downward trend to close the trading week.

The GBPUSD remains the most active pair of the majors. Today early in the U.S. session overlap, a long was taken risking 20 pips for a potential 72 pips to our daily target at 1.3022.

Price moved strongly higher as the USD moved lower. A slight pullback closed our trade just before the U.K. close.

The majors offered several good trade setups today and my favourite was the GBPUSD due to its potential to move further than the other pairs with its current range.

Fridays tend to be good days to trade with the exception being the non-farm payroll ones.

It’s been a rollercoaster ride of late as the market adjusts to the perceived U.S. election outcome and the resurgence of coronavirus infections in parts of Europe and the U.K. Brexit continues to be an unknown and drags on, as does a further stimulus package in the U.S. before the election.

Patience is always required in trading and waiting for high probability trade setups often involves hours of being on the sidelines. Many of my trades lately have had under 20 pip outcomes – as the market gyrates back and forth.

Although my bias tends to be USD bullish, the current market is looking quite bearish for the dollar. This can change abruptly on any given day/week, so it’s best to remain objective and trade technically what you see… and not have any strong convictions. Trading can be very humbling for those that prognosticate.

Monday is a holiday for many in North America.

Enjoy your (long) weekend, stay healthy and good luck with your trading!

Shorting the GBPUSD as Brexit lingers on while the USD showed a little strength early in the session

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The GBPUSD moved higher at the U.K. open but ran into sellers around 1.2928 and began to move lower. A short was taken as it moved back into its Asian range risking 23 pips for a potential 108 pips to our daily target at 1.2799.

The pair moved lower and through its Asian session low but was unable to continue lower and our profit stop took us out of the trade.

With so much uncertainty currently, it’s difficult for the markets to show any signs of conviction. This period could be the calm before the storm. Taking it day by day and remaining neutral in bias is my current approach.

Good luck with your trading!