Michael Bridgman

We will know by November 3rd who President Trump’s pick will be for chairperson of the Federal Reserve after Janet Yellen’s term ends in February.  In the meantime, there is a lot a speculation among who will emerge as the successor from the top 5 candidates.  The bond, stock and currency markets are likely to react to the pick with a large move.  Today the USD was on its back foot once again.

As the U.S. session got underway today, the USDJPY made a lower high for the day and after a very bearish candle a short was taken – risking 13 pips for a potential 75 pips to our daily target.

Price moved down to test its Asian high before descending to test its Asian low… retesting each level… as it usually does.  Price then moved lower and long lower wicks appeared indicating that the buyers were entering.   We tightened our profit stop… as this frequently signals a reversal wave.  Our profit stop was hit and we were out of the trade before the London close.

In Canada, Governor Poloz chose to leave interest rates unchanged – which is prudent with the NAFTA talks appearing challenging.  Tomorrow we have U.S. unemployment claims and an ECB Conference which could stir things up.

Apologies for getting behind in my postings, but the markets have been less active lately and most trades have been for limited gains.  The NZD has been active though with a nice move downward last Friday.  The year is far from over…wait for the market reaction to the new FED chair announcement and ECB’s Mario Draghi’s wording regarding the direction forward.

Good luck with your trading!

I was optimistic about going long the USDJPY today, but it was the other majors that proved to be the better pairs to trade.

As the U.S. session got underway, the USDJPY began to move up allowing a long entry requiring a 12 pip stop loss for a potential 40 pips to our daily target.  Price moved up and closed bullishly above its Asian high and then moved higher before coming back down to retest it – closing our trade for very modest gains.  A look at the 4 hour chart reveals technical resistance that had sellers entering… preventing a close above 1.1245 for the day.

The USD is looking a little stronger this week and a positive meeting between President Trump and John Taylor as a possible successor to Janet Yellen was initially well received by the market.

The EURGBP continues to be worthwhile watching as the market remains bearish on the GBP.

Although I don’t usually post trades of small gains, the market has been subdued of late and any gains are welcome in what is normally an active month for traders.

Good luck with your trading!

There was not much in the way of economic or geopolitical news to stir the markets up today.  As the U.K. session got underway, the EURUSD put in a bottom at its Asian lows.  After trading sideways for 3 hours, it began to move up, and we entered long.  Our first goal was to get through Friday’s low then upward to today’s Asian high and beyond to our daily target at 1.1843.

Price moved up to test Friday’s low before pushing higher but reversed in advance of the U.S. open – and our trade was closed at our profit stop.  Due to the 5:1 R/R the trade had appeal but didn’t materialize in overall lackluster trading activity.

Let’s hope the trading picks up this week and Wednesday looks like it has the potential to be active.

Good luck with your trading!

 

As the U.K. session got underway the USDCAD attempted to test its Asian lows but found buyers.  With a 12 pip stop loss for a potential 61 pips to our daily target – we entered the trade attempting first to get above yesterday’s lows and secondly above the Asian session high.  Price moved up, retested its Asian high before moving higher.  With lots of pending news in the U.S. session, profit taking caused a reversal and we exited the trade well in advance of our target price of 1.2506.

The USD continues to struggle this week despite a near 80% consensus of a December rate hike.  Some of the FED members remain cautious about the effect of interest rate hikes at this time slowing the economy while inflation remains lower than expected.  If this sentiment remains, there becomes less optimism about 3 interest rate hikes in 2018.  President Trump has been thwarted in getting some of his election campaign promises through and hence his planned stimulus for the U.S. economy continues to be delayed.

Trading has been slower than expected for me since returning from holidays.  Most trades lately have been for modest gains and not worth the time required to post them.

Good luck with your trading!

 

 

 

The ECB minutes yesterday revealed little regarding QE tapering.  As a result, we had our eyes on the EURUSD today.  After a third lower high in the U.K. session, and close bearishly below its Asian high, an entry was taken risking 9 pips for a potential 56 pips to our daily target.  Price continued downward oscillating between at its Asian low and yesterday’s low – in advance of the U.S. open.   With a profit stop just above the Asian low, we awaited a further push to the downside.  As the European session ended priced moved down further and we closed the trade at our daily target.

Be careful tomorrow with Non Farm Employment release being typically one of the more volatile trading periods.  We will be back after the long weekend here in North America.

Good luck with your trading!

 

 

The USD continued downward today and the U.S. 10 year yield was off over 3% again.

A short setup in the USDJPY during the U.S. session overlap – allowed us to risk 21 pips for a potential 46 pips to our daily target with 2 hours left in our trading session.  Price moved lower and we quickly locked in some profit removing any risk to the trade.  Price continued downward to our target and we exited.

After ECB President Mario Draghi speech today the EURUSD moved above the 1.2000 level once again and we will see if it can sustain this level or not.

I will be away until the last week of September, but if I find a trade tomorrow, I will post it.

Good luck with your trading!