Michael Bridgman

The markets have not produced a lot of great trade setups to my eyes of late.

The EURUSD made an abrupt move down today after Germany’s top court ruling – going through our daily target at 1.0834. It then made a retracement upward before completing a reversal pattern in the U.S. session overlap.

An entry was taken short risking 15 pips for a potential 30 pips to our daily target. As price had already reached our target earlier, and time left in the U.K. session was dwindling, we closed the trade a couple of pips above our target to be on the safe side.

As clear as this setup appeared, I wasn’t prepared to place a stop loss above market structure and take a less than 2:1 reward for the risk on the trade.

There have been a number of smaller sized trades that add up, but not many large moves that didn’t require uncomfortably large stop losses for me over the past week.

My bias is currently is to be long the USD and trade both the EURUSD and GBPUSD short. The EURUSD looks like it may test 1.0800 and a break of the figure will likely have it test 25 pip increments down to 1.0700 in the near term… as long as the USD can rally.

Trading is tricky and requires patience as we navigate our way through this coronavirus period.

Good luck with your trading and stay healthy!

Back from a week away from trading.

As we approach the end of the month trading is more subdued in advance of the FOMC on Wednesday and the ECB on Thursday.

The GBPUSD moved higher in the first half of London trading on Tuesday, but sellers entered around the 1.2500 figure and price started to move lower going into the U.S. session overlap. A short was taken risking 26 pips for a potential 81 pips to our daily target at 1.2399.

Price moved back down to its Asian session high, but could not close beneath it and we exited the trade at the the U.K. close.

Talk of re-opening economies around the world in May and how this will play out will add some stimulus for the currency markets. We know the economic numbers going forward will be disappointing for some time but hopefully the coronavirus infections and death rates will abate.

Good luck with your trading!

Optimism about the U.S. economy starting up again in as little as four weeks coupled with progress on a drug for treating coronavirus patients brought some relief for the equity markets today.

The USD was on its back foot and a short trade was taken on the USDJPY risking 13 pips for a potential 52 pips to our daily target at 107.29.

Price moved lower taking out its Asian session low and moved lower as the U.S. session overlap got underway. Long lower wicks began to form on the candles as buyers entered. We moved our profit stop lower – barely missing our daily target and were taken out of the trade as price began to move higher.

It’s hard to interpret all the coronavirus related data but let’s hope the curve has flattened or at least begun to flatten.

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

The GBPUSD was not able to remain above 1.2500 today and as it began to move downward during the U.S. session overlap, a short was taken risking 25 pips for a potential 83 pips to our daily target at 1.2407.

Price moved lower and we took the risk out of the trade after the first candle…locking in some profit. Price then moved lower through its Asian session low and yesterday’s low, but failed to reach our daily target and we exited the trade just before the U.K. close.

My current bias is to look for short setups in the EURUSD and GBPUSD with USD strength. The USD continues to trade inversely to the equity markets. With a continued rise in unemployment numbers each week due to the coronavirus, the markets are in for a bumpy ride gong forward. Any shorts in the USDJPY with risk off sentiment should be cautious of a bounce near 107.00.

Stay healthy and safe and good luck with your trading!

I don’t like to trade before what is considered potentially high impact news, but the economic numbers are going to be somewhat horrible and the market knows it. All things being relative, the USD has been weaker recently when the equity markets have been strong and today is no exception.

A long was taken early in the U.S. session after price found a low in the first half of the U.K. session and moved higher very bullishly. The trade was entered risking 18 pips for a potential 76 pips to our daily target at 1.0943.

I don’t like being exposed to sharp reversals, so when price moved to its Asian high, the risk was taken out of the trade and our profit stop allowed for a retest of this level. As price moved with momentum higher to yesterday’s high, we locked in more profit and allowed for a retest of this level. Price continued upward vertically and we locked in more profit with each candle. Ultimately price pulled back to our profit stop before our daily target was reached, but the trade was rewarding.

The EURUSD appears to be trading between 1.0750 and 1.1000 at the moment. A move above 1.1000 could extend to 1.1170. A move below 1.0750 could extend to 1.0635.

Stay healthy and good luck with your trading!

This is the first trade that I have posted in a week and a half. I haven’t had many good trades lately. I will make some pips and also give some back. The market doesn’t seem to have a clear direction at the moment so it’s not a time to take large positions or to get greedy.

Staying disciplined can keep one out of a lot of losing trades. When I have been stopped out recently, it hasn’t been from lack of discipline. It’s been because a large order has gone through and quickly reversed the market temporarily. I got knocked out of one trade in about a minute. If I saw the same set up again, I would take the trade, but sometimes the market goes against us.

The AUDUSD had a couple of 120+ pip moves last week within a 15 minute time frame. When I see a stop and reverse like that, if I’m not in the pair, I won’t go near it until it settles down. There are many reasons that could cause a move like that, but it reinforces the necessity of stop losses at the time of entry.

Today an entry long was taken in the GBPUSD risking 20 pips for a potential 129 pips to our daily target at 1.2444. Price climbed higher and broke above its Asian session high… where we locked in our profit as price tends to retest this level, as it did in advance of the U.S. session today.

I’m trying not to have a strong bias for or against the USD currently -preferring to take it day by day. Currently it seems to trade in the opposite direction to the equity markets except on Fridays. With most people sufficiently spooked by the implications of the coronavirus and its damage, fewer traders are willing to hold over the weekend than usual.

Stay healthy and good luck with your trading!