Michael Bridgman

The EUR continues its downtrend and 1.0500 is my focus for the moment.  Expectations of the first rate hike occurring in December for the U.S. and continued quantitative easing in the Eurozone are helping push this pair lower.  This does not mean that it will only move in one direction as the markets don’t behave that way.

Today we saw a familiar pattern of breakouts being lured in at the Asian lows then price pulling back up.  After this “W” pattern revealed itself, we took the pair short with a 14 pip stop loss for a potential 66 pips to our Target 2.  As price moved lower, we moved our profit stop down – locking in incremental profits along the way.  Price stalled at our Target 1 and we exited after 2 wicky candles.

Tomorrow is a bank holiday in North America and France.  Aside from U.K. news it may be a quiet session.

Back tomorrow if we find a trade.

The EURGBP is trending downward with lower highs and lower lows.  This pair tends not to be too volatile and is more of a slow mover.  With lots of news today… once we got to the U.S. session, this pair tends to be less reactive to the U.S. news releases.  A short is taken following a reversal setup after the ADP Non Farm and Trade Balance releases – with a small 10 pip stop loss for a potential 30 pips to our Target 2.

As price moved downward, it began to find buyers beneath Target 1 and we closed the trade.

Also, whenever the EURUSD and the GBPUSD diverge, it is worth checking this pair for an entry setup.

Good luck with your trading!

Back tomorrow if we find a trade.

 

 

The EUR began to move down as soon as the UK session got underway.   It’s better to wait than to go short on a break of the Asian session’s range.  As price made its first pullback and was reversed back to trend with a very bearish engulfing candle, a short is taken with a 12 pip stop loss for a potential 42 pips to our Target 2.  Our 3 larger charts were all in agreement after the first hour of trading, making this a high probability trade.

Price didn’t move far though and we chose to protect ourselves by moving the stop loss to plus one in advance of the US open.  Price began to move down again with the US traders and eventually hit our Target 2 – where we were closed at our profit stop.

The Eurozone needs a weaker currency and with Draghi speaking tomorrow, we can anticipate more of the same rhetoric.  It will be interesting to see how long it takes before the EUR is at 1.0500.

 

On Tuesday the price of WTI oil was down and looking very weak.  With WTI down, we looked for an entry long in the USDCAD.  As the U.S. session got underway a long entry is found after a very bullish engulfing candle.  Price had tested the Asian session highs and found buyers.  Price moved up and we were eventually taken out on a pullback just above Target 1.

On Wednesday, we had the opposite.  WTI began moving up and the oil inventories number resulted in a 6% push higher from Tuesday.

An entry short was taken as price started to roll over.  To protect ourselves, we moved our stop loss to plus 5 pips in advance of the inventories number…thereby having no risk in the trade and allowing the market some room for knee jerk volatility when the news came out.  With much lower inventories than last week, price plummeted as the CAD strengthened along with WTI.

The EURCAD offered very nice setups too.

Good luck with your trading.

Back tomorrow if we find a trade.

The NZD got a boost during the Asian session with China lowering interest rates.

As price ran into sellers above the Asian highs, a short setup consistent with USD strength presents itself.  With an initial 22 pip stop loss for a potential 78 pips to our Target 2, a short is taken.  Price moved down through yesterday’s high… then came back to retest the level.  We tightened our profit stop and keep moving it down.  When we see that price bounces off our Target 1, leaving a very wicky candle, we close the trade giving back almost 10 pips.

Following Mario Draghi’s comments yesterday we have seen the USD strengthen once again.

Looking forward to next week.  Europe and the UK move to Standard time this weekend.

Good luck with your trading and enjoy your weekend!

 

The EUR was unable to stay above its Asian high and with a 10 pip stop loss a short is taken.  Price moved down to the Asian low and pushed right through it before coming right back up where we exited.  After what the next lower high, we went short again only to be closed out on a second bounce as price came back up to the Asian low once again.

Tomorrow is the main risk event of the week with ECB President Draghi  speaking.  Will he assure the market that the ECB will continue with QE going forward to stimulate the economy?  We are about to find out what the market thinks of his latest assertions.

Good luck with your trading!

Back tomorrow if we find a trade.