Michael Bridgman

After starting the UK session selling off, the GBP then bounced between yesterday’s low and its Asian low for 3 hours before decidedly closing lower. An entry short is taken and the pair moved lower in advance of the U.S. Open.  As new sessions begin and volatility tends to pick up with stops being run, we moved the stop loss to plus 1 pip – removing the any risk from the trade.

As the U.S. part of the session gets going, price drops through our Targets 1 & 2 in one candle and we close the trade on the first sign of a pullback.

Be very careful trading the GBP and EUR as June 23rd approaches.

WTI having reached $51.50 earlier in the week closed down bearishly below $49 to close the week.

Good luck with your trading and enjoy your weekend!

 

WTI closed above the important $50.00 a barrel for the first time this year and also the first time since July 2015.  With a bias to trading the Canadian dollar and the CADJPY cross long, we found a setup as both WTI and Brent began to climb in the early part of the UK session.

With an initial stop loss of 17 pips and 112 pips to our Target 2 (not shown on the chart – T1 was 85.07 and T2 was 85.23) we entered long.  As price began to rise, we moved the stop loss to a plus 2 pips while price tested its Asian high.  As it broke through and continued to yesterday’s high, we tightened our profit stop further.  Price got a little heavy above yesterday’s high as evidenced by the 2 long wicks as it double topped.  As the U.S. session got under way with the pending crude inventory levels…price began to retrace and we were closed out.

Good luck with your trading!

Back tomorrow if we find a trade.

 

The JPY was unable to sustain above its Asian high and set up for a short.  The pair looks like it could test the 106.50 area from last Friday.

With a 20 pip stop loss for a potential 109 pips to our Target 2, we entered short with our first goal of getting through yesterday’s high.  Price moved lower in the U.S. session and as it headed lower, we protected our profits by moving our stop loss…now profit stop lower.  Not having any risk in a trade is a very comfortable feeling.  Price continued downward as we focused on getting through the Asian low.  As lower wicks formed on the candles…indicating buyers entering, we tightened up our profit stop and we were taken out of the market.

Be aware of extreme volatility in the EUR and GBP as we approach Britain’s referendum on June 23rd.  Very large institutional orders were creating some hectic trading conditions last session.  Read the fine print from your broker as you may experience undesirable fills and stops during periods of extreme volatility.

Good luck with your trading!

Stronger USD today going into a long weekend for the US and UK.  Will Janet Yellen give the market reason to believe that a June interest hike is on the table is the big question.

Reacting to the US news today the JPY initially went down.  After it popped right back up we went long with a stop loss just below its session low.  As price continued higher, we moved the risk out of the trade and set the profit stop to plus 2 pips.  As price moved higher we locked in more profit especially as we approached the area that had been a sell zone earlier in the day.  With the markets being leery of Yellen’s speech, coupled with holding over the weekend, we chose to exit as price was rejected at the sell zone and beneath the important 110.00 Big Figure.

June rate hike or not – next week will be interesting.  Will WTI finally close above $50?

Enjoy your weekend especially if it’s a long one for you!

 

The GBP initially surged higher after the UK open before pulling back into its Asian range and trading sideways for an hour.  It then moved higher closing above its Asian high, where a long trade is entered with a 20 pip stop loss for a potential 102 pips to our Target 2.

Price moved higher before slowing down in advance of the U.S. open.  The third candle of the U.S. session with its long upper wick had us tighten our profit stop to just beneath its low.  We continued to heed the candles caution and the market took us out 3 candles later.

Good luck with your trading!

Back tomorrow if we find a trade.