Archives for October 2019

After a second failed attempt to rise above its Asian session high, and a bearish engulfing candle, a short was taken on the EURUSD risking 11 pips for a potential 44 pips to our daily target at 1.1121.

There were a number of U.S. economic news releases today so we tightened our stop loss to prevent getting closed by volatility. Price moved lower taking out yesterday’s high and the its Asian session low. As price continued lower we tightened out profit stop more to prevent giving back too much and it was hit closing our trade.

Tomorrow we have Non-Farm Payrolls which tends to make for volatility but recently not as much as in previous years. Much like FOMC days, I prefer to trade after the release or take the day off.

U.S. – China trade talks continue to progress positively currently. Britain will have a Dec.12th general election, so Brexit will remain unresolved for the time being. The USD has given back most of its gains from last week. We will find out tomorrow if the October 18 low will hold.

Be careful tomorrow and good luck with your trading!

The USDJPY was fairly subdued in trading until the U.S. session got underway where we chose a long entry risking 7 pips for a potential 22 pips to our daily target at 108.98.

There was a little bit of up and down as price moved toward our target, but price continued to make higher lows on shallow pullbacks. This pair tends to move from figure to figure on active days and it currently is running into resistance just above 109.00 today. If the risk on sentiment continues then be very careful at 110.00 which is a very important level.

It will be a very busy week with interest rate decisions by a few central banks. The market is pricing in a 90% probability of a 25 bp cut by the Fed. The U.K. is poised for a general election announcement with a date to be determined in December. Phase 1 of the U.S. – China trade talks continues to look viable this week, and on Friday we will have Nonfarm payroll.

Hold on to your hats and good luck with your trading!

It was a tricky week to find really good and productive entries. Brexit delays, headlines and rumours made for a volatile GBP and the EUR too.

Where are we now with Brexit? If there were an easy solution, Teresa May would have found it. As it turns out, Boris Johnson’s rhetoric about being out by October 31st with or without a deal is not likely to happen either. Instead he is opting for an election in the U.K. but that will require two thirds majority vote in parliament, in order for it to be called. It appears that Brexit will be delayed yet again, and any enthusiasm for being long the GBPUSD has run into some selling due to the stalemate.

Today the EURUSD moved up as London trading got underway then rolled over. A short was taken with a very tight stop loss of 7 pips for a potential reward of 42 pips to our daily target at 1.1074.

Price moved down as USD strength continued today. We tightened our take profit in advance of the U.S. session and closed the trade just above our target as the UK session ended for the week.

Next week, it will be interesting to see if the 1.1000 – 1.0990 levels can hold and if not 1.0950 – 1.0925 may attract some buying. Be careful around the figures.

Enjoy your weekend and good luck with your trading!

The EURUSD moved up to test its Asian session high, pulled back and closed above it, as the U.K. session got underway. A long entry was taken risking 7 pips for a potential 32 pips to our daily target at 1.1120. As price moved up, we took the risk out of the trade by moving our stop loss to a profit stop.

The market continues to be very volatile as the Brexit headlines appear throughout the day. Price surged higher (and just as quickly could have surged lower) and our trade was closed at our target.

The Brexit agreement that Prime Minister Johnson wants so dearly is not quite there yet. The E.U. wants the final legal text to scrutinize and the DUP party still has some reservations before they are willing to consent with the PM. If an agreement with Brussels occurs then the U.K. Parliament will convene on Saturday to vote on it.

The good news is the U.S. – China trade truce is still holding.

Later today China GDP and industrial production will be closely watched. Friday is light on economic news and Brexit progress will be the focus for many traders.

The market is pricing in a 75% chance of a U.S. rate cut of 25bp at the end of the month. Disappointing retail sales and core retail sales today added to USD weakness.

After the AUDUSD made a quadruple bottom and began to move higher, a long was taken risking 9 pips for a potential 41 pips to our daily target at .6772. Despite some tension between the U.S. and China regarding Hong Kong, the commodity currencies strengthened to the USD, as did the EUR and GBP.

Price moved upward testing yesterday’s low before moving higher to test its Asian high as we exited the trade at the U.K. close.

Many traders had their eyes on the GBPUSD, EURUSD and EURGBP as we await further Brexit news.

There is still lots of time for tweets before the U.S. – China trade deal is potentially signed mid November.

Good luck with your trading!

Trading remains volatile as headlines can potentially cause 50 to 100 pip moves very quickly in the current market environment.

Today after moving down in the first half of the U.K. session, the USDJPY found a bottom around 108.15 and began to move higher in advance of the U.S. Open. A long was taken risking 13 pips for a potential 59 pips to our daily target at 108.87.

It’s not uncommon to see some profit taking before the U.S. Open, but with a “risk on” sentiment today and a low risk entry, we reduced the risk even more by quickly moving our stop loss up to the low of the candle just before the open.

The trade worked well with our daily target reached – closing the trade in advance of the U.K. close.

Volatility will continue as the Brexit deadline of October 31st approaches and the GBP can accelerate in either direction on a headline. Although the markets have been optimistic regarding the U.S. – China trade talks since last week, this too can change on any given day.

Good luck with your trading!