The USD had been very strong of late and yesterday it finally pulled back for a day. It continued higher today partly due to positive headlines regarding optimism with the U.S. – China trade talks, combined with another U.S. federal government shutdown being avoided.

After a third lower high in the EURUSD, a short was taken risking 11 pips for a potential 36 pips to our daily target at 1.1287.

On Monday the pair closed below the supportive 1.1300 figure, yesterday it closed back above it, but today it moved lower again. The November 2018 lows may be tested shortly if the USD strength continues.

Good luck with your trading!

The USD strengthened all week and China was on holiday celebrating the lunar New Year.

On Friday the news reported that a meeting between the presidents of the U.S. and China was unlikely to happen before the March 1st tariff deadline. Adding to that was U.S. economic advisor Larry Kudlow commenting that the two sides are still far apart in the trade negotiations. Adding to the tension is the U.S. pushing to ban Huawei, the Chinese telecom equipment maker from U.S. wireless networks, and also telling the E.U. to do the same or risk U.S. countermeasures.

In Europe soft economic numbers from Germany and the European Commission aggressively slashing it’s 2019 growth forecast for the Eurozone from 1.9% to 1.3% and Italy’s from 1.2% to 0.2% created a “risk off” sentiment for the markets.

A short was taken on the EURJPY early in the U.S. session risking 18 pips for a potential 62 pips to our daily target at 123.90 – as price closed beneath its Asian high. Price moved lower to test yesterday’s low before moving further to test its Asian low. Long lower wicks began to form as buyers entered and we tightened our profit stop as the London close approached. Our profit stop was hit – well short of our intended target but for a nice trade to close a quiet week of trading.

I have highlighted an area of the chart to show how quiet the U.S. session tends to be after the London close. It’s not always the case, but frequently price tends to consolidate and move sideways, unless there is something significant pending – like Fed. Powell scheduled to speak.

In trading it’s very important to be disciplined and follow a certain set of rules each day. If you have a solid trading plan and you’re consistent in your execution, then making profits and avoiding large losses is attainable. Some weeks will be more rewarding than others, but we never trade for the sake of trading.

Good luck with your trading and enjoy your weekend!

The USD continued higher and the EURUSD moved lower today. This pair has been ranging between 1.13 and 1.15, for the most part, since October last year.

With the USD moving up for a fourth consecutive day, we looked for a short on the EUR and risked 9 pips for a potential 46 pips to our daily target at 1.1379.

The 1.1400 level found buyers and our trade was closed for a very modest return.

A little profit taking in the USD is likely after four days of moving higher, but I remain USD bullish. Hopefully the U.S. – China trade talks work out favourably in the end. Brexit does not look any closer to be resolved as the deadline nears. Germany’s economy is slowing and that doesn’t bode well for the Euro.

Good luck with your trading!

Fed Chairman Powell’s dovish wording weakened the USD yesterday. Although the reaction amounted to a quick abrupt sell-off of the dollar, it wasn’t an extreme move. The U.S. economy remains stronger than that of the E.U., U.K. and Japan.

The majors are at or approaching critical technical levels. Tomorrow it will be interesting to see where the pairs close the week after we know the NFP and ISM Manufacturing PMI results.

Today as the EURUSD was unable to move higher early in the U.S. session, a short was taken risking 10 pips for a potential 53 pips to our daily target at 1.1432.

Price moved lower but stopped before reaching our target and we closed the trade at the U.K. close. The pair continues to range between 1.1300 and 1.1500.

Be extra cautious tomorrow and anticipate volatility.

Good luck with your trading!

Recent amendments have done little, time is running out and unless the U.K. can take active measures to prevent a “no deal” Brexit it will leave the EU without a deal on March 29th. Last week’s optimism and rise in the GBP faded today.

As the U.K. session got underway the GBPUSD climbed above its Asian high and stalled. Sellers entered and began pushing price down as evidenced by the long upper wicks and lower highs forming. A short was taken and the critical level today to get through was around 1.3060. If this level gives way, price may retest it but if sellers enter again, I expect 1.3000 to be targeted and a potential move down to test the 1.2900 level.

Unable to make it through the 1.3060 level by the London close, we exited the trade at the end of the session.

However, if profound progress is made regarding Brexit, buyers will enter… and a test of last week’s enthusiastic high at 1.3216 is in sight.

The markets await for any clues from Jerome Powell today regarding any clues as to the next rate hike this year. The U.S. – China trade talks resume in Washington today. Oil is rising as Venezuala’s oil supply to the market could be cut off. Non-farm employment change awaits us on Friday.

Good luck with your trading!

The USD closes the week being sold and gold moved closer to $1300 oz.

The USDJPY has not been over the 110.00 yet this year. It rose early in the U.S. session to 109.95 and ran into sellers and started to reverse lower. A short was taken risking 6 pips for a potential 49 pips to our daily target at 109.40.

Price first moved down to close beneath its Asian high and we allowed for a retest of this level. Price moved lower and paused at yesterday’s high, then dropped further. Buyers emerged as evidenced by the long lower wick candle as it tried to move to its Asian session low. We moved our profit stop down and the next candle closed our trade.

With the USD being on its back foot and gold moving up strongly, it was interesting to see the equity markets and U.S. 10 year yield move upward. Perhaps a bigger surprise has been the strength of the GBP this week…although I haven’t found a comfortable entry yet to go long. The sentiment this week is positive but sentiment can change quickly.

Next week will be interesting as we approach the deadline for the U.S. -China trade talks followed by NFP on Friday.

Good luck with your trading and enjoy your weekend!