Michael Bridgman

It’s no surprise that the USD was moderately weaker today with the government shut-down unresolved.

The GBP was very strong today, so with a weak USD and a nice long setup, we entered early in the U.S. session…risking 15 pips for a potential 65 pips to our daily target.   The strength of the GBP today was also confirmed by looking at the EURGBP.

Be aware that the GBP although strengthening can be quite volatile around any Brexit headlines.

The annual conference in Davos, Switzerland this week can also give rise to volatility as participants talk with the media.

I will be away tomorrow.

Good luck with your trading!

 

It was interesting to see the USDX up a bit on Friday and gold was also up.  Oil ended the week softer on Friday.

The USDCAD which has been very active lately set up for a long early in the U.K. session.  With a stop loss of 12 pips for a potential 83 pips to our daily target 1.2493 (not shown) we liked the setup.  As price began to move up from its Asian low, a trade was entered… with the first hurdle being to get above yesterday’s low.  It took a bit of time but price was able to gain momentum and head higher to test its Asian high.  With the U.S. session about to begin, we locked in some profit. Price moved higher and we moved our stop again.  The volatility at the time of the Canadian economic releases caused our profit stop to close our trade.

With the “U.S. government shutdown” headlines, we anticipate USD weakness until the issue is resolved.

Enjoy your weekend and good luck with your trading!

 

 

 

The markets are sending some mixed signals this month.  Today as an example, during the U.S. session overlap gold was down as was the USDX.  After the U.S. economic releases, the USDJPY set up for a short trade… risking 12 pips for a potential 53 pips to our daily target.

Price moved down through its Asian low, retested it and moved down further.  As a long lower wick appeared, we tightened our profit stop and our trade was closed during the next candle.

When the market is giving mixed signals, it’s prudent to trade more cautiously or not at all.  If the USD weakness gains momentum be very cognizant of the 110.00 figure.

Good luck with your trading!

It’s unusual to see the EURUSD move so much during the Asian session.  On Wednesday it sold off in a counter-trend move.  When the U.K. session got underway, price made a wave upward before reversing and setting up for a short entry.  We entered short risking 12 pips for a potential 36 pips to our daily target which also coincided with the 1.2200 figure.

Price moved down to its Asian low where we gave it room to retest this level and tightened our profit stop.  Price then descended to our daily target and closed the trade.

When price completes its range before a major session… like the U.S. session today, it’s likely the new session of traders will reverse the move.  If price has done the majority of its expected range, then anticipate a corrective wave also.  An exception to this is when a major event occurs which shocks the market.  In instances of this nature, price will have an exceptional day, but such days are thankfully few in the course of a year.

Good luck with your trading!