Michael Bridgman

After falling precipitously since May 26th, the USD has bounced as equity markets recalibrate following Fed Chair Powell’s remarks on Wednesday.

The big question remains how economies will adjust following the pandemic coronavirus outbreak. Will reopening of economies as restrictions are eased result in a second wave of infections or not?

Today we shorted the GBPUSD risking 25 pips for a potential 67 pips to our daily target at 1.2519. After three lower highs the pair moved lower to test its Asian session low and then came very close to our target. The trade was closed at the U.K. close.

The moves today were quite uniform in the majors with the USDJPY looking a little left out.

Enjoy your weekend and good luck with your trading!

The USD continues to move lower and test its December 2019 low, but has not closed beneath it. Tomorrow, all eyes will be on Federal Reserve Chair Jerome Powell and how the market will react to his speech.

After the GBPUSD pulled back in the first half of the U.K. session, a long was taken in the U.S. session overlap risking 17 pips for a potential 64 pips to our daily target at 1.2728.

Price moved higher to test its Asian session low and continued higher to our target where we exited – protecting profit as it moved up.

The GBPUSD has closed for 3 days in a row above a technically significant level on the daily chart. This encourages GBP bulls to look toward a target in the 1.3000 area… particularly if any pullbacks to 1.2650 level hold the pair.

Good luck with your trading and enjoy the easing of the lock-down.

The USD has moved lower for 8 straight days.

Today with the ECB news, I chose to stay away from the EURUSD. The GBPUSD and AUDUSD had greater upside to our daily targets. The GBPUSD required an initial 25 pip stop loss for a potential 74 pips to our daily target at 1.2612. Both trades were very good.

After an initial move lower as the U.S. session got underway, the pairs reversed and a long was taken after the news in both the GBPUSD and AUDUSD. Both pairs moved in tandem and the EURUSD mirrored the move.

Price moved higher taking out its Asian session high, retested the level and proceeded higher to our target where we exited the trade.

If the USD continues to decline, the next test will be the December low, then the June 2019 low. Tomorrow if the NFP number is a major disappointment then we may see 96.34 on the DXY. I would be very surprised if by next week, we don’t see a bounce…even if short-lived.

Remember it’s never a good idea to fight the market.

Good luck with your trading!

The equity markets continue to move higher while the USD has continued lower now for 7 straight days.

The EURUSD has been soaring upward. The falling USD has only been able to rise against the JPY as investors remain comfortable with risk… pricing in a strong rebound in economic activity.

If the euro is strong versus the dollar and the dollar is strong versus the yen, then it makes sense to look for a EURJPY long… which is consistent with “risk on”.

A long EURJPY entry was found today risking 18 pips for a potential 74 pips to our daily target at 122.40.

Our first target was to take out the Asian session high, which it did and price continued higher to our target where the trade was closed.

This pair can be very volatile. It can stop and reverse abruptly. It is not a pair that I recommend for anyone new to currency trading.

Good luck with your trading!

Today was another day of USD weakness and it’s never wise to fight the market.

Today a long was taken in the GBPUSD as it began to climb off its session lows – risking 19 pips for a potential 85 pips to our daily target at 1.2401. Price moved higher but failed to stay above its Asian high so we exited the first trade.

As price began another move higher we entered again… risking 15 pips for a potential 49 pips to our target. As price moved higher it failed to reach the 1.2400 figure and we quickly exited.

Yesterday was a similar day of USD weakness. After the EURUSD had made a series of higher lows and was comfortably above the critical 1.1000 figure, a long was taken risking 14 pips for a potential 51 pips to our daily target at 1.1068.

Price climbed steadily higher during the U.S. session overlap and we exited the trade at the U.K. close as it reached our target.

I’m not convinced that the “risk on” trade sentiment is going to last, but this week the stock markets benefitted. There has been a lot of negative talk directed at China from President Trump and we will soon know whether this is just empty political talk or if he means business.

Overall, it was a very negative week for the USD as the month of May concludes.

Enjoy your weekend and good luck with your trading!

The market is moving in both directions based on optimism or pessimism on any given day. This makes it hard to have conviction unless an important level holds or is taken out.

The rally in the AUDUSD was unable to take out yesterday’s high and began to move lower to test .6655 – a critical level from the daily chart. A short was taken risking 16 pips for a potential 60 pips to our daily target at .6604.

Price moved lower through the .6655 level and continued down to test its Asian session lows. As the U.S. session got underway price descended to our daily target where we exited the trade.

Although we may have left pips on the table, it was a successful trade and a reasonable place to exit based upon our target formula, the .6600 figure looming and month end.

Good luck with your trading and safely enjoy the relaxing of the lockdowns!