Michael Bridgman

The USDCAD began climbing higher after the U.S. economic releases today. Both Brent and WTI oil were off more than 2%. The pair had been making a series of higher lows and a long entry was taken risking 9 pips for a potential 32 pips to our daily target at 1.3094.

As price closed above its Asian session high, we locked in some profit moving our stop loss to slightly positive. Price continued higher despite the USD index and gold being relatively flat.

After price moved higher and formed what looked like a reversal pattern, we moved our take profit beneath its structure and fortunately price moved up to test yesterday’s high and the trade was closed at our daily target.

The pair continues to find buyers just above 1.3000 and sellers near the 1.3150 levels.

The market continues to be focused on the progress of the U.S. – China trade talks.

In the meantime, the market is also beginning to price in a 50 bp cut as opposed to a 25 bp cut by the Fed this month.

Good luck with your trading!

As we approached the retail sales release today, the USDJPY moved up just in advance – as if the market knew the number would be favourable. Risking 12 pips for a potential 34 pips to our daily target at 108.36 we went long too.

Price jumped higher, traded sideways for a bit, then moved higher going into the U.K. close where we exited the trade.

If we had waited any longer for an entry, we would not have been able to accept the reward to risk ratio. The USD has strengthened as the market acts in a way consistent with a short-term attention span. The market is definitely a two-way market and one week doesn’t have to be consistent with the sentiment of the previous week or previous tweet.

The good news is the daily ranges seem to be expanding a bit and the U.S. – China trade talks are progressing once again. Oil is off as the U.S. – Iran confrontation/provocation has decreased today.

Good luck with your trading!

As the trading week comes to a close, the USD moved down against the majors and we liked the USDJPY setup. The pair made its high for the day early in the Asian session. It made a lower high in the first half of the U.K. session and made another lower high early in the U.S. session overlap.

Risking 10 pips for a potential 22 pips to our daily target which corresponded with the 108.00 figure, a short trade was taken. Price was able to move down easily to our target where we exited the trade.

Sentiment is negative today for the USD going into the weekend. The major pairs seem to be a little more active, which will bode well for trading if it continues.

President Trump remains keen on “tweeting” the dollar down and Chairman Powell had a dovish tone throughout his Humphrey Hawkins testimony this week.

Good luck with your trading and enjoy your weekend!

Fed Chair Powell’s comments yesterday were perceived as dovish enough for many traders to consider a 50 bp cut at the end of the month. Hence the USD sell-off yesterday.

Today early in the U.S. session overlap, the GBPUSD set up for a short… risking 13 pips for a potential 63 pips to our daily target at 1.2496. Price moved down to test its Asian session high and long lower wicks began to form. We tightened our stop loss accordingly and gave back some pips as price moved up closing the trade at the Asian session high.

Boris Johnson is inching closer to becoming Britain’s next prime minister. Governor Carney has reiterated the material risks of economic disruption from a no-deal Brexit.

The GBPUSD tends to find some buyers at the 1.2500 figure, but this level is no longer strong support.

Stay disciplined and accept what the market gives you.

Good luck with your trading!

Currency daily ranges in the majors have been subdued for some time now, likely due to the uncertainty of progress with the U.S. – China trade talks.

It’s difficult to get too excited about trades under 20 pips, so I prefer not to take the time required to post them. I will make an exception today because I haven’t posted a trade for a couple of weeks. The small trades add up, but it seems like we need twice as many trades lately. This will pass, but in the meantime I won’t be posting many small trade examples.

Today with continuing USD strength after the impressive NFP number on Friday, a short was taken in the AUDUSD risking 6 pips for a potential 46 pips to our daily target at .6938. The setup looked good, price moved downward and we closed the trade at the U.K. close for a very modest gain.

It would have been nice if price had moved to at least Friday’s low before the close but it wasn’t to be.

Tomorrow early in the U.S. session, Fed Chair Powell will be speaking and traders will be listening closely for any hint of a rate cut exceeding 25 basis points this month. As President Trump’s harsh criticisms of the Federal Reserve continue, the market will be looking for signs of Jerome Powell capitulating… or not.

Good luck with your trading!

The EURUSD has surged higher since the Fed announced a pending U.S. interest rate cut in July which has weighed heavily on the USD. Like a rising tide raising all boats, all the majors have strengthened to the USD.

Currently, buyers are emerging around the 1.1340 area and until this area gives way to the downside, price may move higher to test 1.1400.

After price initially moved lower in the U.S. session overlap, a large bullish engulfing candle formed, and a long was taken risking 14 pips for a potential 59 pips to our daily target at 1.1419.

Price moved higher above its Asian session high, retested the level and climbed higher going into the U.K. close…where the trade was closed.

Markets are likely to be cautious ahead of the G20 summit with hopes for a positive outcome between the U.S. and China regarding trade talks. Keep an eye on the U.S. 10 year yield and gold for market sentiment.

Good luck with your trading!