Michael Bridgman

Despite the Nikkei moving up, the JPY set up nicely for a short in early London trading.  The daily chart indicates how the pair has been in a fairly tight range all of September.  With NFP tomorrow we would not expect the range to break today.  The pair set up nicely allowing for a 15 pip stop loss for a potential 84 pips to our Target 2.

Price took awhile but it eventually descended to its Asian session lows.  We protect ourselves in advance of the U.S. Unemployment Claims and the volatility from the news takes us out at our profit stop.

Good luck with your trading!  Be careful trading with NFP due tomorrow.

Back next week when we find a trade.

Today the EUR ran into sellers above 1.1230 and after 2 false breakouts to the downside already – we go short.  The “wash and rinse” is usually a 2 cycle event but today it was 3…as price came back up one more time above the Asian low. Our stop loss of 15 pips for a potential 69 to our Target 2, was not threatened.  We protected ourselves in advance of the U.S. Open moving our profit stop to plus 5 pips.

Price descends to yesterday’s close where it stalls and retests before dropping to our Target 1.  As price retests this level, we exit.

My preference continues to be to trade this pair with USD strength and fade rallies.  Be very careful of taking any trades when the market is not making sense. and the correlations are contradictory.  Yesterday was a good example of day to stay out of the market.

Good luck with your trading!

Back tomorrow if we find a trade.

 

 

 

As Japan’s markets re-open after the silver week holidays, the Nikkei sells off 2.76%.  This translates to sell the USDJPY coupled with a bit of mid-week reversal today overall in the majors.

Sellers of the USDJPY were entering around the 120.00 big figure today.  We found a decidedly bearish candle and entered short with a 17 pip stop loss in the sell zone above 120.00…for a potential 61 pips to our Target 2.

Price moves down to the Asian session lows, before testing and retesting the level.  It then moved down to yesterday’s lows to test the level before descending to our Target 1.  Buyers began to enter below our T 1 and we took that as a signal to exit at 119.50.

Janet Yellen speaks later today.  Final GDP q/q is the early U.S. session focus for tomorrow.

Good luck with your trading!

Back tomorrow if we find a trade.

China’s PMI number missed and both the AUD and NZD sold off during the Asian session.  As both pairs moved up from their Asian lows, we looked for the sellers to enter and go short with the trend.

The AUD offered a nice setup with a 15 pip stop loss for a potential 58 pips to our Target 2.  The Kiwi offered a very good reward to risk ratio trade setup too (not shown).

As the U.S. session got underway and with no U.S. economic news releases pending, we enter short with the intention of getting down to the Asian session low and if the momentum continues…to our Targets 1 & 2 – but we are acutely aware of the .7000 big figure as mentioned yesterday.

As the UK session ends, we exit the trade just below Target 1.

There will be European and U.S. economic releases tomorrow, so trade accordingly.

The RBNZ is expected by the market to lower interest rates going forward… so more short opportunities will be presenting themselves.  I will continue to look for shorts versus the USD as this trend continues…with or without interest rate hike rumours.  Janet Yellen will be speaking after the U.S. close tomorrow…

Good luck with your trading!

Back tomorrow if we find a trade.

 

Very little economic news for the session and broad-based USD strength.  Commodity currencies continue to falter versus the USD.  Very important China PMI due later today as the market moves its focus back to China this week.  Japan remains on holidays.

As the majors weakened to the USD, we awaited for a retest of the Asian and yesterday’s low which allowed us a 12 pips stop loss for a potential 43 pips to our Target 2.  We removed the risk from the trade relatively early and ride it down to Target 2 – protecting ourself along the way.  This is the second day in a row that this pair has made a 3 Drives to a bottom pattern.

Be careful with this pair as it approaches the .70000 big figure.  It will likely be reactive later today to the China PMI release, so be careful.

Good luck with your trading!

Back tomorrow if we find a trade.

 

 

 

Firstly, we have the answer now – no interest rate hike.  The question I ask myself is… if I were travelling the world, which currency would I like to have in my pocket?  The USD!  Next question, if I were a large pension fund or corporation with excess cash in the treasury, where can I safely put that money and make money on it?  U.S. t-bills and bonds!  So…has anything really changed because the Fed didn’t raise interest rates yesterday?  Many analysts would say emphatically…yes!

The Nikkei sold off today and USDJPY followed.  After the pair shows a reversal with the U.S. session underway, we prepare to go long with a stop loss just below the spike bottom of the previous low.  Price begins to climb making it through the Asian low and yesterday’s low.  At the first sign of sellers entering we promptly exit.

Analysts make interesting conversation.  Traders make money!

Good luck with your trading!  Enjoy your weekend!

Back next week when we find a trade setup we like.