Archives for May 2020

Today was another day of USD weakness and it’s never wise to fight the market.

Today a long was taken in the GBPUSD as it began to climb off its session lows – risking 19 pips for a potential 85 pips to our daily target at 1.2401. Price moved higher but failed to stay above its Asian high so we exited the first trade.

As price began another move higher we entered again… risking 15 pips for a potential 49 pips to our target. As price moved higher it failed to reach the 1.2400 figure and we quickly exited.

Yesterday was a similar day of USD weakness. After the EURUSD had made a series of higher lows and was comfortably above the critical 1.1000 figure, a long was taken risking 14 pips for a potential 51 pips to our daily target at 1.1068.

Price climbed steadily higher during the U.S. session overlap and we exited the trade at the U.K. close as it reached our target.

I’m not convinced that the “risk on” trade sentiment is going to last, but this week the stock markets benefitted. There has been a lot of negative talk directed at China from President Trump and we will soon know whether this is just empty political talk or if he means business.

Overall, it was a very negative week for the USD as the month of May concludes.

Enjoy your weekend and good luck with your trading!

The market is moving in both directions based on optimism or pessimism on any given day. This makes it hard to have conviction unless an important level holds or is taken out.

The rally in the AUDUSD was unable to take out yesterday’s high and began to move lower to test .6655 – a critical level from the daily chart. A short was taken risking 16 pips for a potential 60 pips to our daily target at .6604.

Price moved lower through the .6655 level and continued down to test its Asian session lows. As the U.S. session got underway price descended to our daily target where we exited the trade.

Although we may have left pips on the table, it was a successful trade and a reasonable place to exit based upon our target formula, the .6600 figure looming and month end.

Good luck with your trading and safely enjoy the relaxing of the lockdowns!

The elusive close above the 1.1000 – 1.1020 level didn’t happen and sellers emerged today as the EURUSD tested the 1.1000 figure. Global bourses were lower today and the USD was moderately up…accompanied by the move lower in gold.

A short setup was found risking 12 pips for a potential 50 pips to our daily target at 1.0929. Price moved lower after making a lower high and closing back within its Asian range. As price continued down, we protected our profits, but gave back some on the retracement after the European close.

Increasing tensions between the U.S. and China appear to be having an impact on the global equity markets. Currently equity weakness equates to a stronger USD and vice versa.

If the EURUSD closes the week below 1.0880 then the rally may be over. A close above 1.1020 is bullish. Keep an eye on the DXY.

Good luck with your trading!

The EURUSD moved higher today as equity strength continued to weigh on the DXY. With EURUSD momentum clearly up today, an entry long was taken risking 16 pips for a potential 32 pips to our daily target at 1.0996.

If the EURUSD can close above the important 1.1000 figure and more specifically above 1.1020 then there is potential for a move up to test the 1.1145 high from March 27th.

As much as I dislike currently trading it long, if the USD is weak and the market sentiment is risk on… it can move higher.

The 1.1000/1.1020 area will be closely watched.

Good luck with your trading!

The markets have a lot to be concerned about going into the weekend. Foremost, the continued coronavirus (Covid 19) effect to the world economies. Add to that U.S. China trade relations are deteriorating once again, bringing into question whether Phase One will be scrapped altogether and China’s pending response if that happens. Britain and the E.U. are far from agreeing on the terms of Brexit, and so far Britain does not want an extension. This week the GBP has been on its back foot…which makes the EURGBP quite tradeable when the EURUSD and GBPUSD diverge.

Today after the GBPUSD double topped early in the U.S. session, a short was taken risking 17 pips for a potential 58 pips to our daily target at 1.2118.

Price was already beneath its Asian session low and began to move down to test yesterday’s low. Once it closed beneath that, it descended quickly to our daily target where we exited just before the European close.

The break of the GBPUSD beneath the 1.2250 level was significant this week. A move toward 1.2000 now is probable. This level will likely hold at first test. Whether buyers will jump in at 1.2100 or 1.2050 and get control will soon be known. I will continue to look for short setups coupled with USD strength.

Enjoy your weekend, stay healthy and good luck with your trading!

The main takeaway from Jerome Powell’s speech today was that the U.S. is currently not looking to have negative interest rates despite President Trump wanting them.

As price broke to the downside a short was taken in the GBPUSD risking 28 pips for a potential 84 pips to our daily target at 1.2207.

The level to break and stay below today is 1.2250. The trade was closed at the U.K. close and fell a bit short of our target.

Be careful not to be too biased in direction and take trading day by day and even session by session. I will continue to look for short setups in this pair but if the equity markets are strong and the DXY is not, then it’s unlikely we will find a short trade setup that will run.

Good luck with your trading and stay healthy!