Michael Bridgman

Expect volatility this week as it’s month end and quarter end.

Today as the USD moved higher the USDCAD tested and retested it U.S. session lows then moved higher. A long was taken risking 14 pips for a potential 52 pips to our daily target at 1.2901. The Asian session high and another technical level near 1.2880 slowed the move higher going into the European close, but price was able to rise further as the U.K. close drew nearer.

Tomorrow we will hear from three central banks – the U.S. Fed, ECB and the BoE.

Good luck with your trading!

The USDCAD has been fairly volatile lately. The pair tends to run up and test the 1.3000 figure but has difficulty so far remaining above it for long.

As the North American session got underway today, the pair made a third lower high for the day, and a short was taken risking 19 pips for a potential 86 pips to our daily target at 1.2891.

The pair made its way lower but had difficulty near the 1.2925 technical level from the 1 hour chart. Allowing the trade to remain open for 30 minutes after the U.K. close yielded a few more pips. The pair can be active throughout the North American session but it makes for a long trading day.

Congratulations to Nick who traded successfully for a combined total of just over 100 pips today, trading the GBPUSD, EURUSD and USDCAD. One hundred pips of profit on any day is something to celebrate. Awesome trading Nick!

Good luck everyone with your trading!

A week of central bank interest rate announcements made for very volatile currency markets.

As the U.S. session got underway today, the USDCAD retested its Asian session high and immediately found buyers. An entry long was taken risking 20 pips for a potential 53 pips to our daily target at 1.3060.

Price moved sharply higher, slowing a bit as it approached the mid-figure before making a surge to close above our daily target level. We locked in our profits as the market moved a little higher before a pulling back to close our trade just above our target.

Weeks with multiple interest rate decisions by central banks tend to create extremes in price movement. Personally, I prefer to be on the sidelines and wait for the markets to digest the implications which can take a day or two.

Enjoy your weekend and good luck with your trading!

During the first half of the U.K. session the USDCAD made a series of lower highs as it tested and moved beneath yesterday’s high. As the North American session began, it reversed higher but was unable to take out today’s high. As price moved lower through the 1.2600 level once again, a short was taken risking 16 pips for a potential 44 pips to our daily target at 1.2546.

Price continued lower and we moved our profit stop lower, taking the risk out the trade in advance of the CAD economic news release. Price tested its Asian session low for two candles before breaking decidedly lower. The trade was closed at our target just before the European close. The last fifteen minutes going into the European close can be quite volatile as traders take profits.

Be cautious with the USDCAD in the 124.75 area where it may find buyers in the near term. If that level goes, pay attention to the 123.50 area.

I was away from teaching and trading during the month of May due to emergency surgery and required recovery time. I had lots of time to think about why so many traders struggle to make consistent profits in trading. I believe that many new and experienced traders complicate their trading with useless indicators, not used by institutional professionals and are oblivious to what the market is showing them each day. Understanding what to look for, how to spot it, money management and keeping it all relatively simple is the key to long term success in trading. There is no holy grail indicator. More on this in future posts.

Good luck with your trading!

I tend to trade the AUDUSD more often than the NZDUSD, but the setup in the Kiwi today required only a 13 pip stop loss for a potential 41 pips to our daily target at .6463.

My preference is not to enter trades in the middle of the Asian session range unless I have a number of compelling reasons or confluences. A thirteen pip stop loss and a greater than 3:1 reward for the risk also helped in the decision making. As we approached the Asian session lows, we locked in more profit especially as the U.S. session was nearing and there was important economic releases pending.

The trade was closed at our target in advance of any news related volatility or reversals.

There are a number of economic news releases on Friday to be aware of for Europe, U.S. and Canada.

Good luck with your trading!