Archives for January 2022

After the U.S. traders got underway today, the USDCAD made a lower high which was followed by a double top and reversal pattern… closing beneath 1.2750. A short was taken risking 19 pips for a potential 78 pips to our daily target at 1.2670.

Price moved lower going into the European close, then pulled back to retest its Asian session low before descending further to the 1.2700 figure. Unfortunately today it was not convenient to watch the trade past the U.K. close, so we exited.

China will be off this week for Chinese New Year celebrations – which will reduce volume in the Asian sessions. There will be numerous important economic news events tomorrow as February begins. Be careful trading near the releases.

Good luck with your trading!

Canada’s economic releases today came in below expectation. As the equity markets continued lower this week, the markets were in “risk off” sentiment… which tends to move flows to the JPY.

A short in the CADJPY was taken risking 10 pips for a potential 22 pips to our daily target at 90.56. The entry looked like the second drive of a “three drives pattern”. This is usually, but not always, the largest of the three waves. Price made its way lower and the trade was closed at our target.

The up and down volatility is making for trickier than usual trading. If you are up 20+ pips, be careful not to give them back. Removing risk from a trade works well as does locking in profits as your trade moves in the direction of your target. Never let your position go negative if you’re up by 20+ pips.

Good luck with your trading and enjoy your weekend!

The CADJPY began the U.K. session moving higher before ranging for three hours going into the U.S. session overlap. Price attempted to push higher briefly, but was unable to close above its Asian high and formed three bearish hammer candles.

A short was taken risking 10 pips for a potential 57 pips to our daily target at 91.18. Price moved lower completing a mountain-like pattern just after the European close then began to retrace upward and closed our trade.

January has been a choppy month for trading and I will continue to post trades which resulted in greater than 20 pip moves. Thursday’s economic releases will be important for both the E.U. and U.S. Be careful trading around them.

Good luck with your trading!

As the EURUSD closed above 1.1335 today, a long was taken requiring an 8 pip stop loss for a potential 38 pips to our daily target at 1.1375.

The first area to get through was the 1.1350 level which price did with ease as the USD exchange rate weakened amongst the major currencies.

The next upside level to test was Friday’s high at approximately 1.1364 and price struggled to move higher… as we approached the U.K. close today. As price came back to retest this level our trade was closed.

Core CPI releases tomorrow for the U.S. will be closely watched.

Good luck with your trading!

The event risk today was the U.S. NFP release. An hour after the release, the USDCAD moved convincingly lower and closed beneath the 1.2700 figure. A short was taken risking 20 pips for a potential 76 pips to our daily target at 1.2617.

The USD was weak today and the other majors were correlating accordingly. As the USDCAD moved lower, we moved our initial stop loss lower to lock in a positive trade and continued to lock in profit as the pair continued lower. The first area to get through was the 1.2650 level as this pair remains sensitive to both the figure and mid-figure levels.

As the U.K. session neared its close, the 1.2650 level was tested and the pair moved a little lower going into the close where we exited the position today. I personally like to be out of most positions by the U.K. close. The USDCAD however is an exception as it frequently completes its move during the North American session latter half. Today, I was content to exit the trade at the U.K. close.

Had the pair moved farther to the downside, the 1.2625 level is an important level from the daily chart and 1.2617 was our daily target.

I didn’t see anything that I liked this week until today. There is never a rush to take a trade, so if they don’t meet your trading criteria, wait for a higher probability setup.

Happy New Year and good luck with your trading!