Michael Bridgman

The elusive close above the 1.1000 – 1.1020 level didn’t happen and sellers emerged today as the EURUSD tested the 1.1000 figure. Global bourses were lower today and the USD was moderately up…accompanied by the move lower in gold.

A short setup was found risking 12 pips for a potential 50 pips to our daily target at 1.0929. Price moved lower after making a lower high and closing back within its Asian range. As price continued down, we protected our profits, but gave back some on the retracement after the European close.

Increasing tensions between the U.S. and China appear to be having an impact on the global equity markets. Currently equity weakness equates to a stronger USD and vice versa.

If the EURUSD closes the week below 1.0880 then the rally may be over. A close above 1.1020 is bullish. Keep an eye on the DXY.

Good luck with your trading!

The EURUSD moved higher today as equity strength continued to weigh on the DXY. With EURUSD momentum clearly up today, an entry long was taken risking 16 pips for a potential 32 pips to our daily target at 1.0996.

If the EURUSD can close above the important 1.1000 figure and more specifically above 1.1020 then there is potential for a move up to test the 1.1145 high from March 27th.

As much as I dislike currently trading it long, if the USD is weak and the market sentiment is risk on… it can move higher.

The 1.1000/1.1020 area will be closely watched.

Good luck with your trading!

The markets have a lot to be concerned about going into the weekend. Foremost, the continued coronavirus (Covid 19) effect to the world economies. Add to that U.S. China trade relations are deteriorating once again, bringing into question whether Phase One will be scrapped altogether and China’s pending response if that happens. Britain and the E.U. are far from agreeing on the terms of Brexit, and so far Britain does not want an extension. This week the GBP has been on its back foot…which makes the EURGBP quite tradeable when the EURUSD and GBPUSD diverge.

Today after the GBPUSD double topped early in the U.S. session, a short was taken risking 17 pips for a potential 58 pips to our daily target at 1.2118.

Price was already beneath its Asian session low and began to move down to test yesterday’s low. Once it closed beneath that, it descended quickly to our daily target where we exited just before the European close.

The break of the GBPUSD beneath the 1.2250 level was significant this week. A move toward 1.2000 now is probable. This level will likely hold at first test. Whether buyers will jump in at 1.2100 or 1.2050 and get control will soon be known. I will continue to look for short setups coupled with USD strength.

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

The main takeaway from Jerome Powell’s speech today was that the U.S. is currently not looking to have negative interest rates despite President Trump wanting them.

As price broke to the downside a short was taken in the GBPUSD risking 28 pips for a potential 84 pips to our daily target at 1.2207.

The level to break and stay below today is 1.2250. The trade was closed at the U.K. close and fell a bit short of our target.

Be careful not to be too biased in direction and take trading day by day and even session by session. I will continue to look for short setups in this pair but if the equity markets are strong and the DXY is not, then it’s unlikely we will find a short trade setup that will run.

Good luck with your trading and stay healthy!

The USD continued its grind higher today until the European close and then turned negative.

The GBPUSD quickly made its high of the day just after the London open but ran into sellers. When the U.S. session overlap got underway, the pair made a third lower high for the day and a short was taken risking 19 pips for a potential 47 pips to our daily target at 1.2297.

Price moved lower and fell through the 1.2300 figure as well as through our target. We closed the trade happy to get some extra pips.

Friday is a holiday in the U.K. as well as NFP day in the U.S.

Good luck with your trading and enjoy your weekend!

We have had three days of USD strength this week. The move upward has been slow and steady and we may have another day of the same before we encounter the NFP number on Friday. Even the dismal ADP Nonfarm Employment Change today didn’t cause USD weakness.

The GBPUSD sold off early in the U.K. session and retraced about a third of the move before rolling over again. A short was taken in the U.S. session overlap risking 20 pips for a potential 40 pips to our daily target at 1.2334. Price moved lower quickly, pulled back for one candle and continued lower into the U.K. close… reaching our daily target just in advance.

As long as USD strength continues, I will be looking for EURUSD and GBPUSD short setups and looking to fade any rallies. With the current euro weakness, the EURJPY is worthwhile watching, particularly during a “risk off” sentiment day. The pair can snap back quickly, so it’s not without added risk.

Good luck with your trading!