Forex Tips

Shorting the USDCAD as the pair continues to trend lower

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The USDCAD has been trending significantly lower. A short was taken early in the U.S. session as price began to move lower – away from a key area. Our first target was 1.3591 but 1.3574 was our main target and ultimately where the trade was closed.

I find a lot of trading opportunities with the JPY pairs. Next week the Bank of Japan meets and despite firm inflation, the BOJ is not expected to raise rates. Significant attention will be on BOJ bond purchases which have reduced recently with an expectation of further reductions going forward.

Enjoy your weekend and good luck with your trading.

Long the EURJPY today following the U.S. CPI numbers

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Following the U.S. economic releases today the euro was strong and the yen was not. A EURJPY long was taken, with the trend, as price began to break to the upside.

Price moved up to test its high from yesterday, then through the 165.00 figure and up to our target at 165.13 where the trade was closed.

Tomorrow’s economic news releases are fairly light. Oil is likely to be a focus. There could be some good trading opportunities… keep it simple.

Good luck with your trading!

Shorting the USDJPY during the U.S. session

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There is a continued sense of fear and uncertainty in the financial markets resulting in the USD being weaker and the JPY stronger today. The opposite of this was true yesterday when President Trump put the tariffs mostly on hold, causing USDJPY to soar higher.

Today, apprehension was back and after waiting for the U.S. economic news to pass, a short was taken in USDJPY.

The pair moved lower and our target was reached before the U.K. close.

You may wonder why I didn’t stay in longer to test yesterday’s low. I had my target set and the trade closed while I was looking at something else. My targets have very high probability of being reached. If I like the setup, take the trade and reach my target… I’m satisfied. Being greedy is a trader’s enemy. People that last in trading understand this.

Always use stop losses. We can’t control the markets but we can control how much of a loss we are willing to accept when taking a trade. I don’t recommend risking more than 1 percent and I rarely risk that much.

There is a lot of U.S. economic news scheduled for Friday, so be careful with your entries anywhere near them.

Good luck with your trading!

Shorting the USDJPY going into the UK Close

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My style of trading is typically done on the 15 minute chart and positions are closed daily.

Today I had been looking for a setup on the GBPJPY but found the more subdued USDJPY providing a better entry.

It was late in the U.K. session and the USDJPY had begun to decline.

The markets are EXTREMELY volatile at the moment. You may do everything right and according to your trading plan, but President Trump may say something that causes a trade to go against you. Be aware of the economic news and any pending Tariff talk.

If you follow sound money management and execution, any losses will be 1 percent or less.

Good luck with your trading!

Note: I’m easing my way back into teaching intraday trading again. After a three year break from teaching, I have decided to very selectively teach once again and share over 20 years of currency trading experience. Due to the limited times available that I can offer to one-on-one mentor you, my course is best suited for North American, UK and European residents.

Long the CADJPY in the U.S. session after the retracement completes

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Note: I have taken the last couple of years off from teaching with very few exceptions. I have preferred just doing my own trading. I have now been in the financial markets full-time for over 35 years and have been trading currencies for over 20 years.

Although I have enjoyed helping others learn what to look for in a chart, and how to find high probability trade setups, I find many would-be traders don’t put the effort into practicing. Many people have come to me over the years and think that trading will be easy to learn and not require much work on their part. The truth is… trading is VERY difficult and like anything else it requires dedication, coupled with many many hours of practice.

When we watch the Olympics or attend a symphony, we admire the performance of the athletes or musicians. What we don’t see is the hours of dedication and practice that they have put in, to get to level they are at. To get good at trading requires a similar commitment of time and practice!

Today’s Trade

During the U.K. session, the CADJPY was unable to sustain above its Asian session high. It began to move lower and got down to the middle of its Asian session range. Shortly after the U.S. economic releases, the pair started to move higher. A long was taken with a stop loss underneath the U.S. session low – requiring about 15 pips.

Price moved higher to test it’s Asian session high and continued higher to our Target 1. The stop was moved higher to protect profit… just under T-1. The pair surged higher and our trade was closed at T-2.

Hint: The EURJPY and AUDJPY were moving the same direction

Tomorrow the markets may be quite volatile around the U.S. CPI releases early in the U.S. session. Currently, the market is not expecting any U.S. interest rate cuts before the fall.

Good luck with your trading!

Shorting the USDCAD as the DXY weakens from a bank bailout

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As panic ensued following the collapse of Silicon Valley Bank, the U.S. government acted in order to protect the depositors and prevent the appearance of possible contagion in the banking system. Goldman Sachs over the weekend predicted the Fed will not raise interest rates next week as a result of the SVB insolvency.

The DXY started the trading week moving downward with bond yields plummeting, and a USDCAD short was taken risking 20 pips for a potential 43 pips to our first target at 1.3722. Price kept going down after it reached our target level, so we placed our profit stop lower. Our second target was the Asian session low around 1.3709 and expecting a bounce as we neared the figure at 1.3700 we closed the trade. Price continued lower without us… making a significant dip before retracing.

On Tuesday in the U.S. session, Core CPI will be a closely watched figure by traders. Britain has Average earnings and Claimant count change releases pending.

Good luck with your trading!