Michael Bridgman

Today as the USDJPY moved down it found buyers at its Asian session low and a reversal setup gave us an entry risking 6 pips for a potential 42 pips to our daily target at 114.18.  Price moved up very little in advance of the U.S. Open and we moved our stop loss up to protect the trade from going negative if the pending U.S. economic GDP release reaction pushed price lower.   The pair continued to move higher with the moderately stronger USD today.  It paused at its Asian session high, retested the level then moved higher.  We continued to move our profit stop higher and the trade was closed as price pulled back to our profit stop.

This trade was very routine and far from exciting.  The lesson for anyone who doesn’t know it already…is that a trader should always lock in profit as the market can reverse in a blink and you can quickly move from a positive position to a negative one.  What would be worse is to trade without a stop loss.

When Fed Chair Powell spoke today the USD abruptly turned negative.  His comment, “While FOMC participants’ projections are based on our best assessments of the outlook, there is no preset policy path. We will be paying very close attention to what incoming economic and financial data are telling us.” did not sit well with USD bulls.  The USDJPY dropped over 50 pips and the AUDUSD jumped up 90 pips.

Always be aware of the potential effect that a central banker’s comments can have on a country’s currency.

Good luck with your trading!

The USD was slightly stronger today and global stock markets began the week positively.

The AUDUSD moved strongly higher during the Asian session trading, which usually is followed by a reversal when the U.K. traders come on.  Almost uniformly at the same time today, the majors began to decline to the USD.  A short was taken on the AUD risking 9 pips for a potential 49 pips to our daily target at .7218.

Price retraced its Asian session move in a stair step manner and we closed the trade at the London close.

Both the U.S. and European economies have slowed recently and this has become a concern for traders.  Although a December rate hike in the U.S. is still priced into the market, the next rate hike in 2019 is now in question.  With a slowing European economy, the potential for a rate hike in 2019 is now very questionable.  The good new for Britain is the E.U. accepted their Brexit proposal over the weekend but the bad news is there remains considerable doubt that it will pass in the British Parliament.  Hence the GBPUSD continued downward.

Good luck with your trading!

The AUDUSD set up for a long today with a slightly softer USD and gold moving up.  Risking 6 pips for a potential 32 pips to our daily target at .7274 we entered long after a “W” pattern reversal and bounce off a simple trendline.  Price moved up in advance of the U.S. Open and we removed the risk from the trade in advance of the pending  U.S. economic releases.  We then continued to lock in profit as price moved higher.  The trade was closed at our daily target.

The Fed’s rate hike cycle looks like it could be coming to an end in 2019, thereby no longer constituting an argument for a stronger USD.  Weak U.S. data will put increasing pressure on the greenback.  The stock markets as leading indicators have already shown concern for future global growth.

The back and forth optimism/pessimism regarding an amicable Brexit continues to weigh heavily on the GBP keeping many traders cautiously away from it.

Tomorrow is a holiday in the U.S. and Friday will be light trading as many Americans enjoy a long weekend.  Happy Thanksgiving!

Good luck with your trading!