Michael Bridgman

The market is moving the right direction but it was a little difficult for me to find entries today.

After the U.S. session got underway,  the USDJPY setup for a trade risking 8 pips for a potential 18 pips to our daily target at 114.04

The good news is the trade ran past our target and we managed to get an extra couple of pips.  As price was testing the 114.00 figure, we were cautious as this trade appeared to be quite limited.  The bad news is the trade took off after we exited.

Let’s hope tomorrow is more rewarding.

Good luck with your trading!

Signs of a smooth Brexit are not visible at the moment.  As mentioned yesterday, my preference it to look for short setups.  This pair is fully capable of moving upward 80 or more pips in a blink – if a headline were to surface giving traders reasons for optimism toward Brexit.  In the meantime, keeping a tight stop loss and locking in profits is my preferred strategy.

Today after the London open we had a quick push downward followed by a pullback and reversal setup.  We entered short risking 14 pips for a  potential 41 pips to our daily target at 1.2953.

The USD continues to show moderate strength today and the EUR, GBP, AUD & NZD look safer to short to my eyes.

Good luck with your trading!

As Brexit continues to weigh on Sterling, and PM May continues to struggle in finding support, a short setup was found on the GBPUSD.  After lower highs appeared in the U.S. session overlap, a short was taken risking 16 pips for a potential 57 pips to our daily target at 1.3011.  Price moved vertically down pausing and retesting its Asian session high before pushing lower into the U.K. close where we exited the trade.

It may be a difficult few days for the GBP as British politics continue to weigh on the pair.  Ultimately Brexit will get worked out like NAFTA – now known as USMCA.  Sterling will remain potentially volatile in the meantime, but at this juncture, I’m more comfortable finding short setups with tight stop losses.

We have entered the last quarter of 2018 and it will be interesting to see if USD strength will prevail.  Italian politics have the potential to drag the Euro lower.  The Canadian dollar is benefitting today from the new trade agreement and the current high oil prices.  Australia and New Zealand remain vulnerable to China’s slowing economy.  We will soon see what the market thinks.

Good luck with your trading!

 

The USD showed moderate strength today and as the U.S. session got underway, an entry long was found on the USDJPY risking 11 pips for a potential 39 pips to our daily target (not shown) at 113.82.  Price moved up but failed twice to close above its Asian session high and left a long upper wick.  We closed the trade at the European close not wanting to give back any more pips.

We now enter the last quarter of the year with a very strong U.S. economy continuing and another interest rate increase expected in December.  The E.U. and U.K. Brexit agreement remains unresolved.  Inflation is appearing in Europe with German inflation y/y for September at 2.3% confirming the E.C.B.’s recent hawkish tone.  The impact from the China U.S. trade tariffs are keeping the market unsettled some days yet appear to be completely disregarded other days.

Looking forward to final push.

Enjoy your weekend!

The USDJPY found its low early in the U.K. session and completed a bullish reversal pattern.  An entry long was taken risking 11 pips for a potential 33 pips to our daily target at 112.98.  Price gradually climbed to its Asian session high as the U.S. session was getting underway.  With U.S. economic news releases pending, we locked in profit and subsequently closed the trade at our daily target, as the previous candle had a long upper wick and the 113.00 figure sat immediately above.  As it turned out… the USD continued to strengthen and the pair continued to climb much higher without us.

The U.S. economy continues to strengthen but the market lately has had a tendency to focus on U.S. negatives as opposed to U.S. positives.  It will be interesting to see how the final quarter of 2018 unfolds.

Good luck with your trading!

Although the EURUSD popped upward last week and closed above 1.1725, it hasn’t had much follow-through since and has not closed above 1.1800 since May.  With a slightly positive USD today awaiting the Federal Reserve announcement, we went short after the second failed attempt of the EUR to stay above its Asian session high.  A setup risking 10 pips for a potential 72 pips to our daily target at 1.1694 is hard to pass on.

Price moved down but did not take out yesterday’s low before the U.S. open where our profit stop was executed.

Unfortunately the EURJPY didn’t set up at the same time or we would have taken it – as it has been a bigger mover of late.  With the Fed interest rate announcement and accompanying statement today, we can move on to other central bank speeches as the week continues.

Good luck with your trading!