Michael Bridgman

The EURUSD moved down further today to a very important level on the daily chart.  With ECB President Draghi speaking tomorrow, we will see how traders respond to his comments and if he reveals anything new.  Currently he has told us that the ECB will be buying 30 billion in bonds per month until September and that may extend – interest rate hikes will be down the road.  In the meantime the USD is remaining moderately strong and today we took a EURUSD short as price rolled over.

Being cautious in advance of the U.S. open… we lowered our profit stop and our trade was closed for a very modest gain.  As price moved down during the U.S./U.K. overlap we could not find another entry point.

On Thursday we have the U.S. employment number first, followed by Mario Draghi speaking at the European close.

Good luck with your trading!

Both the EUR and GBP are very sensitive to Brexit headlines as was clearly evidenced on Monday.  Today after initially moving down early in the U.K. session the EURUSD climbed higher but failed to get above its Asian high, thereby forming a lower high for the day.  A short was taken risking 12 pips for a potential 76 pips to our daily target.

As price moved down in advance of the U.S. open, we locked in profit and progressively moved our profit stop lower.  As price continued downward in the early part of the U.S. session, we continued to lock in profit, particularly after price left a long lower wick at yesterday’s low.  We were subsequently closed as price hit our profit stop on a retracement.

December is shaping up to be active in advance of the holiday season.  The USD continues to hold on to moderate strength since the tax reform was passed.  Let’s hope the rest of the week is as active as the first two days.  Be very careful trading should you feel incline to look for a trade around the Non-farm employment release on Friday.

Good luck with your trading.

 

The EURUSD started the U.K. session selling off to test yesterday’s low in advance of the CPI Flash Estimate y/y release, then it clearly found buyers and started to move upward.  An entry long was taken…risking 15 pips for a potential 45 pips to our daily target.  Price continued upward and once it cleared its Asian range and yesterday’s high… it continued higher with momentum.  As price had exceeded our daily target and each candle continued to close bullishly higher, we kept moving our profit stop approximately halfway of each closed candle – until the market took us out of the trade.

 

Unless the U.S. tax reform bill is passed the USD bulls are finding little to entice them.  Even President Trump’s appointment of Marvin Goodfriend to the Fed Board  of Governors didn’t impact the USD today.  With continued inflation optimism in Europe and Great Britain making headway with the Brexit divorce this week, the Euro and Sterling have more appeal currently than the USD.  The EURGBP pair is currently testing an important level on the Daily chart and it will be very bearish if it gives way.

Good luck with your trading!

Although the market would love to have gained more insights into any changes that Mr. Powell may bring to the Fed monetary policy, he was no more forthcoming than current Fed Chair Janet Yellen.  It was however, nice to see the USD up a bit yesterday –  but it remained fairly flat today.

As the EURUSD was unable to sustain above its Asian high and began to move down today…we went short risking 18 pips for a potential 64 to our daily target at 1.1801.  As price continued down we moved our stop loss to plus 1 pip.   After price penetrated its Asian low, we moved our profit stop  to just above the Asian low to give it room to retest this level.  As price came up it closed our trade for modest gains.

On Thursday we have a European and a U.S. economic news release to be aware of for potential volatility.  On Friday we will not have the Non-farm Employment release, instead it will be released the following Friday.

Good luck with your trading!

 

A weaker USD again today produced a small corrective wave in the USDJPY which bounced lower after touching yesterday’s low – just in advance of the U.S. open.  A  short was taken risking 12 pips for a potential 42 pips to our daily target.  With a number of U.S. economic releases pending, we moved our profit stop to plus one pip in advance of the news.  We then systematically locked in profit as price moved to our daily target where our trade was closed.

The market remains focused on the U.S. tax reform and and a flattening yield curve…in the meantime the USD is continuing to be sold.

 

Today as the New York session got underway the USDCAD was unable to close above its Asian high and began to roll over.  A short was taken with a stop loss of 16 pips for a potential 48 pips to our daily target at 1.2760.  Price quickly moved lower and we allowed for a retest of the Asian low.  A fairly vertical move occurred as the USD weakened and WTI strengthened.  As price touched our target the trade was closed.

On Monday traders were concerned about the German political outcome as the coalition government broke down.  The Euro as a result had it’s ups and downs.  The Asian session traders sold the EUR early on and it reversed fully an hour after the London open.  As it failed to stay above its Asian high, a short was taken for the ride down…risking 21 pips for a potential 63 pips to our daily target at 1.1724.  Price moved down but began to retrace taking us out of the trade just after the European close.

Wednesday is likely to be busy trading in advance of the U.S. Thanksgiving holiday with a lot of U.S. economic releases pending.

Good luck with your trading!