Archives for September 2021

Although the U.S. equity markets showed further signs of weakness to end the third quarter, the USD was unable to muster any strength today following four positive days in a row.

Once the USDCAD broke its Asian session low early in the U.S. session, a short was taken risking 23 pips for a potential 55 pips to our daily target at 1.2655. Price accelerated lower and our trade was closed at our target three candles later. Price continued lower for two more candles without us and formed a reversal pattern going into the U.K. close.

Friday is a holiday for China and Hong Kong. Europe, Britain, Canada and the U.S.A. all have potentially high volatility economic releases to be aware of tomorrow.

Good luck with your trading!

The USD was very strong today in a uniform move versus the majors.

There were a number of economic news releases and the DXY continued its ascent.

I continue to find trades in the active USDCAD and CAD crosses. A long was taken in the USDCAD today risking 23 pips for a potential 59 pips to our daily target at 1.2779.

The trade today ran up to the 1.2750 mid-figure where it had difficulty closing above. As the end of U.K. session drew nearer, we closed the trade at this level… content to take the profit.

It’s noteworthy to see the US 10 year yield above 1.50% once again. Keep an eye on the 1.70% area for further impact on equities.

The economic calendar for Thursday and Friday is a busy one and potentially volatile as a result, but NFP will not be released until October 8th.

Good luck with your trading!

Today was an active day despite the pending FOMC statement. I thought trading might be slow today while the market awaited the FED outcome, but it was active and the Canadian dollar was very strong… as was oil.

The overall sentiment of the market was “risk on” as was evidenced by the equity markets in Hong Kong, Europe, London and subsequently the U.S.

The markets have been active this week and the summer doldrums appear to be behind us.

The USDCAD attempted to move above the 1.2800 figure early in the U.S. session and failed. After two bearish candles, a short was taken risking 22 pips for a potential 81 pips to our daily target at 1.2713. Price moved lower passing through the mid-figure then had a one candle pullback 30 minutes before the U.K. close, which triggered our profit stop taking us out of the trade.

The active USDCAD remains my current favourite pair to trade and the GBPUSD is my second favourite.

The market is currently very short the Aussie which can mean an abrupt reversal when the sentiment begins to change and the shorts rush to the exit door. I’m also trading the EURCAD and CADJPY. My EURUSD trades have been less rewarding and less frequent as the pair remains in a tighter daily range than usual. The USDJPY trading is picking up with the 110.00 level still being a key technical level.

Trading volumes have picked up recently and I hope we have a nice run of active trading for the balance of the year.

Good luck with your trading!

The USD strength continued today and an entry long was taken in the USDCAD early in the U.S. session overlap – risking 20 pips for a potential 54 pips to our daily target at 1.2723.

Buyers began entering near the Asian session low as the U.S. session got underway. Price then made a new session high (our entry point) before moving higher to test both its Asian session high and yesterday’s high. It then surged up and through our target price. As price rose above the mid-figure, sellers emerged. After two candles with long upper wicks we exited the trade.

If the DXY can continue higher, a test of the March 31st high and August 20th high will be closely watched by traders.

Enjoy your weekend and good luck with your trading!

We have moved into the second half of September now and daily trading ranges continue to be much tighter than usual. September so far, looks a lot like August. The GBPUSD and the USDCAD continue to be my favourite two pairs to trade because they offer the best daily ranges of the major pairs. With oil continuing to trend higher, the CAD crosses also offer good trading ranges.

With a very strong U.S. dollar today, an entry long was taken in the USDCAD after the first round of economic news releases in the U.S. session… risking 20 pips for a potential 61 pips to our daily target at 1.2707.

As price moved higher approaching the 1.2700 figure, sellers emerged and the pair closed bearishly lower, leaving a long upper wick and we exited the trade.

With the current trading ranges being tighter than usual, it can be trickier to find trades that run more than 20 pips. With that in mind, money management is always critical to a trader’s success.

Currently, I like to use a smaller risk percentage per trade with a slightly larger stop loss. That may sound contradictory, so this is what I mean… instead of risking 1% on a trade, I will often risk less, for example .5% per trade. When the ranges are constricted, I don’t want a large institution to be able to move the market enough to take me out easily because my stop loss is too close to the market when I enter… so if I normally am comfortable with a 15 pip stop loss, I may opt for 20 pips when I first enter. Avoid trading at low volume times of the day too, so you will be less vulnerable to being stopped out.

It’s a tricky market currently, but it is tradeable and trading the more active major pairs is a safer way to trade it.

Remain disciplined and patient.

I don’t publish trades that are under 20 pips, but I have had a lot of them lately and they add up.

Good luck with your trading and be nimble!

August was the slowest month I’ve seen in over 17 years of currency trading. I think my best trade was for 21 pips but the majority were in the 1 to 15 pip range.

I am happy September has arrived and the volume and ranges will pick up from here. Who knows perhaps Jerome Powell will finally tell us when the bond tapering will begin.

Oil was up today and the Canadian dollar was strong. After the U.S. economic releases and a declining DXY, a short was taken in the USDCAD risking 15 pips for a potential 39 pips to our daily target at 1.2554. Finally a trade that moved quickly… and to our target. The CADJPY was also a good trade today.

Friday will bring the Non-Farm Payroll release which tends to be the catalyst for abrupt moves. When I trade this event it is with pending orders and only if price is not too volatile just in advance of the release. Otherwise, I will wait and trade the pullback after the reactionary burst when the market is settling down.

It’s a long weekend in North America with Monday being the holiday.

Enjoy your weekend and good luck with your trading!