Michael Bridgman

With major stock markets selling off today, a short was taken on the AUDJPY.  Both the AUDUSD and AUDJPY looked like attractive shorts when the U.S. session got underway.  They both had moved down during the Asian session then recovered a bit.  As they began to roll over in the U.S. session a short was taken in the AUDJPY risking 10 pips for a potential 33 pips to our daily target at 81.02.  Our daily target for the AUDUSD was .7385 and thinking that it would pause at .7400 made the AUDJPY more attractive… with the 81.00 figure just below our target.

We were closed by our profit stop as the pair found buyers at it’s Asian low.  Either trade would have been a good one.

Remember to keep protecting your profits by moving your profit stop regularly as price moves in your favour.  The markets are particularly volatile  with trade tariff talk heating up.

Good luck with your trading!

Although the Bank of England left rates on hold yesterday, the GBPUSD climbed higher.  Choosing to fade that move today during the U.S. session overlap, a short was taken risking 16 pips for a potential 71 pips to our daily target.  The idea was to ride it down through yesterday’s high and the Asian session low, on the way to our daily target at 1.3214.  It wasn’t to be as price began to retest an important level on the 1 hr chart and our trade was closed for minimal gains.

The USD is weaker today and the continued trade tariff rhetoric is not helping it.  Let’s hope for better trading opportunities next week.

Enjoy your weekend!

 

The trade war implications between the U.S. and China have the markets unnerved and moving toward safety today.  With major stock indices selling off to begin the week and money flows moving toward the JPY, we chose to short the AUDJPY.  The AUDJPY is a good gauge for risk appetite and today it moved down.

A short was taken early in the U.S. session as price made a third lower high…risking 10 pips for a potential 47 pips to our daily target.  Price moved lower testing its Asian session low, then descended further into the London close, where we exited the trade.

The AUDUSD moved in parallel.  Either trade was attractive.

There is so much going on geopolitically that the majors are likely to remain active going into the summer.  The USDCAD is likely to be active this week as we approach the OPEC meeting on Friday with rumours of both Russia and Saudi Arabia wanting to increase oil production by 1.5 million barrels per day.  Commodity currencies have been suffering in the face of the strong USD.  Talk of trading tariffs between the U.S. and Canada are also weighing heavily on the Canadian dollar.

Good luck with your trading!

 

 

 

 

On Thursday, E.C.B. President Draghi stated that the Q.E. program will end at the end of December this year (no surprise there).  The surprise for the market was that he stated there would not be any interest rate increase through the summer of 2019…and the EURUSD plummeted.  This came the day following the FOMC hawkish statement that a fourth interest hike this year is on the table.

Avoiding the potential volatility from the Draghi speech, I chose to focus on an AUDUSD short… risking 9 pips for a potential 36 pips to our daily target at .7522.

The BOJ disappointed today, but the market is very focused on the trade tariffs with China.  The U.S. economy is very strong, but trade wars especially on the scale rumoured for China will not help it.  I read a report today that Treasury Secretary Mnuchin has warned President Trump that the tariffs could have dire consequences. The good news is that both countries have some time to reconsider and negotiate before the implementation date of July 6th.

It’s pretty exciting out there.  Always make your trading decisions on what the market is doing and showing you – not the ever-changing headlines.  It’s very useful to know the market’s sentiment, but trade what you see…not what you think.  Don’t be concerned about stepping aside when the signals are less clear and coming back later.

Enjoy your weekend!

 

 

On Wednesday, well before the FOMC rate announcement, a short setup was found on the USDJPY.

After the Summit in Singapore yesterday went well, the market shifted its focus back to trade tariffs.  With a pending announcement from Fed chair  Powell, and the USD not showing any strength, a short USDJPY trade had potential.  We risked 11 pips for a potential 55 pips to our daily target at 110.06.  Price had failed to close above its Asian high and we were hoping to get through yesterday’s high and the Asian low on the way to our target.  As price moved down, it bounced at its Asian low…leaving a long lower wick.  We tightened our profit stop and our trade was subsequently closed as buyers entered in this area.

On Thursday the market will be listening closely to ECB President Mario Draghi… expecting to hear when the bond purchasing by the ECB will end.  The market is trying to determine how soon Europe will be able to reduce its asset purchasing and move toward normalization.  Any surprising signs of this being imminent will help the EUR appreciate.

On Friday the BOJ statement may be anti-climatic and in the meantime, 110.00 remains telling for the USDJPY.

Good luck with your trading!