European bourses moved higher as did the FTSE in London going into the U.S. session. An appetite for risk continued as the Dow surged higher after the opening, but it subsequently reversed. The USDJPY found sellers as it moved to test the 110.00 big figure.

A short was taken risking 14 pips for a potential 55 pips to our daily target at 109.31 which corresponded with its Asian session low. Price came down sharply going into the London close where we exited the trade ahead of our daily target.

The GBPUSD put in a solid gain today as fears abated (for now) about a hard or “no deal” Brexit. The U.K. is posting some encouraging economic numbers and the oversold GBPUSD had legs to the upside today. A critical level from the Daily chart around 1.3080 contained price for today. Volatility remains potentially very high until Brexit is resolved, but if it gets above 1.3100, I expect it will be attracting some position longs and if 1.2900 gives way and Brexit politics weigh negatively, I expect more shorts entering.

Tomorrow we have French and German PMI releases but the major event risk will be Mario Draghi’s speech and how dovish his comments are interpreted. Be careful trading the EURUSD in advance of Draghi’s comments.

Good luck with your trading!

Overall the Euro and Sterling are not looking good at the moment and the USD is recovering well this week – as trade talks with China continue to sound positive.

As the U.S. session got underway, the EURUSD broke lower and a short was taken risking 8 pips for a potential 48 pips to our daily target at 1.1349. Price moved down through its Asian session low but had difficulty getting through yesterday’s low. It began to reverse mid-figure leaving a long lower wick candle. We moved our profit stop just above the candle’s high and the next next candle closed the trade.

Until the U.S. – China trade talks and tariffs are finalized, the markets will be potentially very volatile, so trade very cautiously… and always always always trade with a stop loss!

Enjoy your weekend and good luck with your trading!

The EURUSD was more appealing with a risk of 13 pips for a potential 75 pips to our daily target at 1.1338. An entry short was taken, price moved down to yesterday’s low where it began to retrace in advance of the U.S. open closing our trade for modest gains well short of our target.

The AUDUSD and NZDUSD were very active today but I didn’t like the reward for the risk in either pair.

There are some mixed signals appearing once again which makes trading trickier and riskier than usual. The GBPUSD is extremely volatile, so be very cautious with it. There is some appetite for risk today but if this changes and U.S. equity markets start to decline substantially watch for flows to the safe haven yen. There are some major economic news releases tomorrow to be aware of.

Good luck with your trading!

It’s getting very interesting again. In Britain all eyes are on the outcome of the parliamentary vote with wide expectation of defeat for Teresa May. Whenever the GBPUSD rallies, I wait for it to turn and look for a short setup.

Today with growing negativity and uncertainty ahead of the parliamentary vote, the GBPUSD set up for a modest short. However, it ran further going into the London close. When the U.S. session got underway, price retested its Asian session low and was rejected. Risking 11 pips for a potential 33 pips to our daily target at 1.2809, we went short.

Price moved down as traders considered Britain’s quagmire. It’s very difficult to know how Britain’s exit from the E.U. will transpire and resolve itself, and in the meantime this pair and its crosses will be in the crosshairs. Ultimately Brexit will be resolved and the GBPUSD will climb higher. In the meantime, optimistic rumours will help move it higher and vice versa.

As price moved to our target today, we allowed it to retest yesterday’s low where sellers continued to emerge and we rode it down, closing it at the U.K. close.

Analysts have been making a case for a lower USD and I understand their reasoning, but I don’t agree with it…at least not yet. The Euro remains vulnerable as Mario Draghi hasn’t swayed in his belief that a significant amount of monetary policy stimulation is still needed. Previously, he stated that there would be no interest rate hike through the summer of 2019 and now one might think possibly longer. The U.S. Federal Reserve is likely to raise rates this year if inflation gets above it’s target, regardless of President Trump’s wishes.

So far, the U.S.-China trade talk rumours continue to be positive and if progress is made, not rumoured to be made, look for the USDJPY to rally and JPY crosses to weaken.

It’s always a two-way market with new information coming to light each day.

Good luck with your trading!

There are a number of conflicting signals in the markets this week – making it difficult to find high probability trade setups. The market has a lot to digest to begin 2019.. as it looks forward.

Equity markets continued higher today along with gold, oil, the U.S. 10 yr yield but the USD dropped. The Nikkei was up over 1% today, but the USDJPY set up for a short. Even the AUDJPY moved lower usually implying a risk off tone.

After the U.S. traders got underway, a short was taken in the USDJPY risking 15 pips for a potential 30 pips to yesterday’s low. As price began to move down, we took the risk out of the trade by moving our stop loss to plus 2 giving the trade some room to test and retest its Asian session low. As price moved lower, we locked in more profit and gave it room to retest yesterday’s low. Price continued lower and as it moved toward the 108.00 figure, we closed the trade just above at 108.10 – the low from May 29, 2018.

Even P.M. May’s Brexit defeat today in parliament didn’t sink the GBPUSD which suggests how weak the USD is today. U.S. – China trade talks are continuing and rumours are positive, but the USD is moving lower. If it all seems a little confusing…it’s because it is! Traders now awaits Jerome Powell’s comments tomorrow for further guidance.

Good luck with your trading!

Equity markets were stronger today as was the USD. Early in the U.S. session the USDJPY made a lower high and began moving down. We entered short risking 16 pips hoping to get at least 32 pips before the London session ended.

Price moved down to yesterday’s high and we moved our profit stop just above this level to allow for a retest. Price continued lower to test its Asian session low and found buyers leaving a candle with a long lower wick. Not wanting to give back too many pips, we moved the profit stop just above the Asian low and as price moved higher the trade closed just before the U.K. close.

As the new year begins, traders will be focusing on the U.S. – China trade talks and Jerome Powell’s speech on Thursday. There are a number of significant economic news releases scheduled this week so be careful of the potential for volatility.

Like the Federal Reserve be flexible in your outlook.

Happy New Year and good luck with your trading!