Michael Bridgman

The EURUSD started the U.K. session selling off to test yesterday’s low in advance of the CPI Flash Estimate y/y release, then it clearly found buyers and started to move upward.  An entry long was taken…risking 15 pips for a potential 45 pips to our daily target.  Price continued upward and once it cleared its Asian range and yesterday’s high… it continued higher with momentum.  As price had exceeded our daily target and each candle continued to close bullishly higher, we kept moving our profit stop approximately halfway of each closed candle – until the market took us out of the trade.

 

Unless the U.S. tax reform bill is passed the USD bulls are finding little to entice them.  Even President Trump’s appointment of Marvin Goodfriend to the Fed Board  of Governors didn’t impact the USD today.  With continued inflation optimism in Europe and Great Britain making headway with the Brexit divorce this week, the Euro and Sterling have more appeal currently than the USD.  The EURGBP pair is currently testing an important level on the Daily chart and it will be very bearish if it gives way.

Good luck with your trading!

Although the market would love to have gained more insights into any changes that Mr. Powell may bring to the Fed monetary policy, he was no more forthcoming than current Fed Chair Janet Yellen.  It was however, nice to see the USD up a bit yesterday –  but it remained fairly flat today.

As the EURUSD was unable to sustain above its Asian high and began to move down today…we went short risking 18 pips for a potential 64 to our daily target at 1.1801.  As price continued down we moved our stop loss to plus 1 pip.   After price penetrated its Asian low, we moved our profit stop  to just above the Asian low to give it room to retest this level.  As price came up it closed our trade for modest gains.

On Thursday we have a European and a U.S. economic news release to be aware of for potential volatility.  On Friday we will not have the Non-farm Employment release, instead it will be released the following Friday.

Good luck with your trading!

 

A weaker USD again today produced a small corrective wave in the USDJPY which bounced lower after touching yesterday’s low – just in advance of the U.S. open.  A  short was taken risking 12 pips for a potential 42 pips to our daily target.  With a number of U.S. economic releases pending, we moved our profit stop to plus one pip in advance of the news.  We then systematically locked in profit as price moved to our daily target where our trade was closed.

The market remains focused on the U.S. tax reform and and a flattening yield curve…in the meantime the USD is continuing to be sold.

 

Today as the New York session got underway the USDCAD was unable to close above its Asian high and began to roll over.  A short was taken with a stop loss of 16 pips for a potential 48 pips to our daily target at 1.2760.  Price quickly moved lower and we allowed for a retest of the Asian low.  A fairly vertical move occurred as the USD weakened and WTI strengthened.  As price touched our target the trade was closed.

On Monday traders were concerned about the German political outcome as the coalition government broke down.  The Euro as a result had it’s ups and downs.  The Asian session traders sold the EUR early on and it reversed fully an hour after the London open.  As it failed to stay above its Asian high, a short was taken for the ride down…risking 21 pips for a potential 63 pips to our daily target at 1.1724.  Price moved down but began to retrace taking us out of the trade just after the European close.

Wednesday is likely to be busy trading in advance of the U.S. Thanksgiving holiday with a lot of U.S. economic releases pending.

Good luck with your trading!

 

Although the stock markets were up nicely today and the U.S. 10 year yield was up significantly… gold and the USD were up modestly.

As the USDJPY attempted to move above its Asian high and failed, we went short risking 10 pips for a potential 60 pips to our daily target.  Price moved lower and pushed down hard on any buyers as evidenced by the long upper wicks early in the U.S. session.  When the first long lower wick appeared… as price tested its Asian session low, we tightened our profit stop and the subsequent candle closed the trade.

On Friday we have ECB’s President Draghi speaking, followed by Canadian inflation numbers and U.S. building permits.

Good luck with your trading!

 

The environment today is one of safety or “risk off”.   The U.S. economic releases met expectations keeping the USD flat overall.  The U.S. 10 yr yield dropped heavily and curiously gold was unable to make any headway again today.

The NZDUSD had a countertrend move to the upside today and reached our upside target before fading after the US releases.  Having exceeded our upside target we waited for the pullback and shorted the pair…which also coincided with the trend on the larger charts.  The 60 minute chart was particularly revealing today.  With a 10 pip stop loss for a potential 47 pips to our downside target the R/R was very attractive.

Daily ranges appear to be expanding a bit this week, so let’s hope the trend continues.  Unemployment releases from Australia and the U.S. are on deck… along with retail sales from Britain and Governor Carney speaking on Thursday.  With the risk off environment watch for money flows to the JPY.

Good luck with your trading!