Archives for March 2022

The U.K. and Europe moved their clocks ahead on Sunday. North America is now in sync again having moved their clocks forward two weeks ago.

Today there were no economic news releases in the U.S. session, but oil was moving down. A long was taken in the USDCAD in advance of the U.S. open risking 13 pips for a potential 41 pips to our daily target at 1.2540. Price initially pulled back as the U.S. session got underway before moving higher.

Price continued higher through our target and we protected profits candle by candle until the trade was closed.

The market has been very choppy lately so it was nice to find a trade that ran, especially on a Monday.

It looks like it will be busy week for economic news and Friday will have the NFP release as April arrives.

Good luck with your trading!

Despite this being the first of four triple witching days of 2022, the volatility didn’t appear to be more than we have been experiencing lately.

After a steep sudden sell-off yesterday following the 25 bp interest rate increase in the U.K., the GBPUSD today moved higher in an attempt to recover from its move lower.

A long was taken risking 20 pips for a potential 82 pips to our daily target at 1.3212.

Price had two technical levels to get through and it did. After that it was up and away. We were able to remain trading today until the end of the U.K. session where the trade was closed.

Trading the AUDUSD this week has been profitable and is getting my attention more than the USDCAD. The market daily ranges are up, which makes trading more rewarding. North America and Europe/UK remain out of sync by an hour for another trading week.

Stay nimble and protect your profits.

Good luck with your trading and enjoy your weekend!

The North American traders will be starting effectively an hour earlier and overlapping with the European and U.K. markets for an extra hour this week and next until Europe and the U.K. move their clocks ahead for Daylight Savings Time.

Today after the economic news releases the CAD caught a bid as did the major North American equity markets. With the USDCAD moving lower and the USDJPY moving higher, a long was taken in the CADJPY risking 18 pips for a potential 50 pips to our daily target at 92.45

The first two candle pullback was a retest of two important technical levels before price continued higher. As price continued upward to test its Asian session high, we tightened up our profit stop as the European close approached and the trade was closed.

Wednesday the FOMC interest rate announcement is expected to be a 25 bp increase. The accompanying statement will be telling. With the current very high inflation, the Fed will be walking a fine line attempting to slow the economy gradually without dragging it into recession.

Tomorrow Russia may default on a major bond interest payment which will have further ramification for the fraying Russian economy. China is reported to have said they want to avoid being impacted by U.S. sanctions over Russia’s war.

Good luck with your trading!

Trading currently is very volatile. The invasion of Ukraine and sanctions on Russia have created so much uncertainty that the financial markets are extremely volatile.

Today the CAD was very strong going into the U.S. session overlap and the EUR was very weak. Traders who took advantage of shorting the EURCAD were well rewarded.

As the USD began to gain some strength and the EUR weakened further, a short was taken risking 18 pips for a potential 96 pips to our daily target at 1.0888. I was not expecting the EURUSD to break 1.0900 today but the pair has been very active, so it is possible. Personally, if price bounced defending 1.0900, I would have exited… but it didn’t make it down to the figure while I was trading it.

As the U.S. session overlap began, a brief retracement occurred as the EURUSD moved higher. After 3 bearish candles and two technical levels broken, a short was taken.

I would love to post charts each trading day showing gains of over 20 pips but they have been few and far between lately. Personally, I don’t like giving back profits, so in a volatile market, I protect my profits after getting the risk out of the trade. If a technical or psychological level slows price down, and it starts to retrace, I get out… taking my profit and get back in only if the trade starts to move back in the original direction that I was trading it.

Lately, that has involved a lot of in and out trading for small gains. The gains accumulate over the course of the week though.

Next week, Chair Powell is expected to announce a 25 basis point rate hike on Wednesday. The frothy U.S. economy is experiencing high inflation which is getting worse due to the Russian Ukraine war. The prospect of the E.U. economies slowing dramatically is causing traders to short the EURO especially as energy prices have soared recently. Once again, traders are talking about the possibility of EURUSD moving to par.

This weekend North American clocks move forward so the U.K. trading will be starting and ending an hour later for those of us on this side of the Atlantic.

Good luck with your trading and stay nimble.

The GBPUSD oscillated in a tight range during the first half of the U.K. session. As it moved lower to its Asian session low early in the U.S. session overlap, an entry was taken risking 15 pips for a potential 107 pips to our daily target at 1.3270.

Price moved lower and managed to get through the 1.3250 area as we locked in profit while it moved lower into the European close. Price continued lower for one more candle before it retraced closing our trade. We also shorted the EURUSD and AUDUSD today.

On Friday traders will be watching the NFP release closely. Fed Powell on Wednesday soothed the markets by indicating a 25bp rate increase will (likely) be announced this month at the Fed meeting.

Any economic news currently can be offset by news coming out of the Ukraine with its implications. Trade cautiously and lock in your profits to avoid any losses.

Our thoughts are with the Ukrainian people as they endure the invasion of their country.

Good luck with your trading!