Michael Bridgman

The EURUSD moved up briefly as the U.K. session got underway. The idea today was to wait for it to roll over and trade with the trend lower.

We entered short with a stop loss of 7 pips for a potential 41 pips to our daily target at 1.0841. Speculation of Germany heading toward recession and further ECB easing is putting pressure on the pair.

The pair moved lower taking out its Asian session and yesterday’s lows. We tightened our profit stop and ended up having the trade closed as the pair retraced in advance of the U.S. session.

The pair may continue moving lower taking out 1.0800, 1.0750 and reach 1.0700 in the near term with continued USD strength. On counter trending days, I anticipate shorts to enter just above 1.0900.

Good luck with your trading!

Sellers continued to emerge around 1.3000 today in the GBPUSD. A near retest of it’s Asian session high was immediately met with selling, pushing it to its Asian session low – early in the U.K. session.

After the U.S. economic releases today, price began to make another move downward and a short was taken risking 12 pips. The idea was to see if the pair could make it through the 1.2950 area and down to test 1.2900. As price moved lower, we protected profits – especially as a long lower wick appeared with a uniform move occurring across the majors at the same time.

The following candle closed our trade just above 1.2930 for an acceptable return.

Tomorrow the much awaited NFP number will be released and we will see if if the USD can close higher for a fifth consecutive day… or not.

Good luck with your trading!

Despite the daily headlines about the coronavirus, a “risk on” sentiment prevails in the financial markets. The USDX continued to climb for a third straight day as fears about the spreading of the coronavirus outside China abate somewhat.

Although shorting the GBPUSD was very appealing today, the size of the stop loss was more than twice the size of the stop loss for a EURUSD short.

Risking 12 pips for a potential 36 pips to our daily target at 1.1000, we entered the EURUSD short instead.

Price plunged lower through its Asian session low and yesterday’s low. We moved our stop loss into profit and awaited the considerable economic news today to pass, while protecting profit. Price continued lower touching our daily target closing the trade at 1.1000.

The 1.1000 big figure is going to attract buyers but my preference remains to short the EURUSD when combined with USD strength. If 1.1000 gives way after a retest, look for buyers near 1.0950 and 1.0900.

Brexit is not going to be easy and if the 1.3000 figure doesn’t hold, I will be looking for buyers to emerge near 1.2950 and 1.2900 going forward. My preference is similar to the EURUSD – short when combined with USD strength.

As for USD strength, it won’t go up every day and it will take some effort for the DXY to get above and stay above 98.40. Be cautious at these current levels and be cognizant of the NFP release this Friday.

Good luck with your trading!

There were lots of economic news releases today. For me, the idea was to wait for them to come and go and see which way the market was going to move as a result… but not before.

The AUDUSD was meandering up and down, then broke its simple upper trendline just before the U.S. releases. It moved up to retest the line after the news and then began to move back down.

A short was taken risking 8 pips for a potential 20 pip to our daily target at .6818. Price dropped through its Asian session low to test yesterday’s low and plunged right through it. The trade was closed at our target for a nice end to the week.

A short EURUSD at the same time netted only 4 or 5 pips…but we’ll take them.

Congratulations to Blair who nailed the AUDJPY while I was busy with the AUDUSD and EURUSD trades. I love it when former students make more pips than me – as long as they follow the rules. Well done Blair!

Good luck with your trading and enjoy your weekend!

After dovish comments by ECB President Christine Lagarde the EURUSD and its crosses moved lower. The stop losses were too expensive for me, but the AUDUSD offered a short setup risking 11 pips for a potential 32 pips to our daily target at .6833.

An entry was taken and price began to move lower. With a strengthening DXY, price gained downside momentum and our target was reached fairly quickly without any retracements.

The first area to keep an eye on was yesterday’s high and then the Asian session low. Price descended through both and the trade was closed at our daily target.

There is lots of economic news releases tomorrow so enjoy the ride.

Good luck with your trading!

Some positive economic releases early in the U.K. session brought the EURUSD buyers in and as the U.S. session got underway a top formed and a short was taken risking 5 pips for a potential 38 pips to our daily target at 1.1075.

The EURJPY was an alternative trade setup, but the stop loss was more expensive than on the EURUSD. With a cautious tone to the market today, either trade was attractive.

The idea was to ride the EURUSD down to its Asian low and hopefully down to our daily target at 1.1075 before the U.K. close. On its first test of the Asian session low, buyers stepped in and price quickly tested its Asian session high before it started to fade again.

The trade was closed a candle before the U.K. session ended to avoid any volatility going into the close as positions were liquidated. This a fifty/fifty proposition… as whose to know if the sellers are going to take control? With the EURJPY also bouncing off its Asian session low, it seemed better to take profit and come back tomorrow.

The 1.1070 level looks like it may be tested shortly and that will open the door for a test of 1.1050 and 1.1000 going forward for shorts.

The GBPUSD has found buyers below 1.3000 but the market is positioning itself for a potential B.O.E. rate cut on January 30th. Weak economic news before then strengthens the market’s bearishness, but today we saw better than expected numbers for Britain.

Shorts will be eyeing the 1.2980 level then 1.2950. A move below 1.2950 would open the door for a test of 1.2900 figure.

With the corona virus causing some fear in Asian trading, USDJPY shorts could push the pair below 109.70 where it could accelerate further to the downside.

Good luck with your trading!