The USD strength continued today and the EURUSD and the GBPUSD both moved down.  We are a week away from the U.S. midterm elections.

As the GBPUSD began to move down in the U.S. session today, a short was taken risking 17 pips for a potential 46 pips to our daily target at 1.2716.  Price moved down and we lowered our stop to protect ourselves in the event of a sudden move upward.  This pair is very vulnerable to any Brexit headlines, so small and tight stop losses are very important.  Due to scheduling conflicts this week, I will be closing trades at the European close at the latest, as was the case today.

The EURUSD looks like it may test its 1.1300 August low and it will be interesting to see how it reacts at this level.

Good luck with your trading!

The EURUSD formed a double top today and dropped back into its Asian range in advance of the U.S. open.  Risking 17 pips for a potential 65 pips to our daily target at 1.1334 we entered short.  As price moved down we moved our stop loss to plus 1 as the U.S. market got underway.  As price moved down and long lower wicks formed, we tightened our profit stop further and the trade was closed well short of our target.

There continues to be an increase in fundamental reasons for shorting the euro, but the USD strength has been moderate at best of late.  It was interesting to see the U.S. equity markets move higher to start the trading week, after last week’s declines.  These are cautious times for trading but entry setups are occurring most days even if the returns are less rewarding than usual.

Note:  I won’t be adjusting my charts or trading times to accommodate the U.K. and European Standard time shift this past weekend.  In North America, Daylight Savings time will end on November 4th.  Next week, everything will be back to normal.  This week only, my charts will show the European open and close as opposed to the U.K. open and close.

Good luck with your trading!

When the markets are anxious “risk off sentiment” money flows tend to move toward the yen, Swiss franc and gold.  Equity markets can be seen as an indicator of fear and greed.  The U.S. equity markets sold off on Wednesday erasing gains for 2018.  On Thursday the markets rebounded and closing higher and recovering Wednesday’s losses.  On Friday, the equity markets moved down again sharply as the U.S. session got underway.

As price made a lower high early in the U.S. session, a short was taken in the USDJPY risking 13 pips for a potential 32 pips to our daily target at 111.75.   Price moved down to our target and we closed the trade.  Price gained further downside momentum and continued lower without us.  As the U.S. equity markets began to pare some of their losses intraday, the pair reversed higher.  The majors made uniformed moves today and the USD has been weaker once again.

I’m curious as to whether the U.S. equity markets can recover to close positively today to end the week.  If not, next week may start off ugly with negative sentiment and continued selling.

Good luck with your trading and enjoy your weekend!

The FOMC meeting yesterday confirmed that the U.S. economy continues to be very strong and the concern centers on how many more rate increases will be necessary to strategically slow it down.

Today the EURJPY spent some time stay above its Asian high but ultimately failed and an entry was taken risking 14 pips for a potential 82 pips to our daily target at 128.78.  Price slowly moved down in advance of the U.S. open and we protected ourselves by moving our stop loss to a profit stop.  Price continued down to test yesterday’s low and its Asian session low before bouncing above yesterday’s low where we exited the trade.

Much like yesterday despite a stronger USD versus the majors, it lacked strength versus the JPY.  As the USDJPY made a second lower high for the session, a short was taken risking 8 pips for a potential 46 pips to our daily target at 112.08.  Price moved down tested its Asian session low and briefly bounced making a third lower high for the session before plummeting and reaching our target.

Although talks between Brussels and London are sounding more positive, the GBPUSD has continued lower and a close below 1.3050 is technically bearish.  A close for the EURUSD below 1.1430 would also be technically bearish.  News relating to an amiable and workable Brexit can potentially make both pairs jump considerably, so any short trades would be well advised to have tight stops.

It’s nice to see multiple trade setups again.

Good luck with your trading!