The EURUSD continues to be a pair that I like to short… as previously mentioned.  It doesn’t set up every day but when it does as it did today, I want to take advantage of it.

Today the USD was strong and after the EUR failed to stay above its Asian high, a short was taken risking 12 pips for a potential 69 pips to our daily target.  This type of risk/return setup on a trending pair is very hard to resist.

Price moved down vertically.  We tightened our profit stop taking the risk out of the trade and then allowing for a retest of its Asian low.  Price continued lower and plunged through yesterday’s low.  After a large candle to the downside which left a moderate lower wick, we tightened our profit stop to lock in 50 pips and our trade was closed.  The pair subsequently moved to our daily target (without us), then began to retrace going into the London close.

With oil moving down the past couple of days, the USDCAD has been very active.  We were unable to secure more than 15 pips yesterday on the pair,  but I have talked with others that did much better and were very successful trading it today.

Enjoy your weekend!

 

With Brexit in just over 10 months, internal squabbles continue for P.M. May regarding her plans to remain in the customs union longer if necessary as the question regarding the Irish border remains unresolved.

BOE Governor Carney in his recent statement has left the market thinking that a rate hike in August is below a 50% likelihood.  Carney will be speaking throughout the week which makes the GBPUSD potentially very volatile.  With price still below a critical level, we will continue to look for shorts…and of course listen to what Gov. Carney says.

Today a short was taken early in the U.S. overlap risking 17 pips for a potential 47 to our daily target at 1.3402.  Without a strong USD today, the trade went back and forth before bouncing off its Asian low.  Our profit stop was hit ahead of our daily target for a modest gain.

I will continue to look for high probability short setups on EURUSD and GBPUSD this week.

Good luck with your trading!

 

 

As mentioned a couple of week’s ago, our bias is to trade the EURUSD short… with the trend.  It broke a very important technical level and we will continue to evaluate it daily for entry setups.  On Wednesday after the U.K. open, the pair failed to stay above its Asian session high and an entry short was taken risking 14 pips for a potential 76 pips to our daily target.  Price moved lower and bounced just above our target at 1.1765 leaving a long lower wick.  We tightened our profit stop and price moved higher just before the U.S. open closing our trade.

On Thursday, the EURUSD tested its Asian session low at the U.K. open and moved higher.  After making a third lower high for the day, we found an entry short (with trend) risking 17 pips for a potential 69 pips to our daily target.  Price moved lower then briefly retraced… making a fourth lower high for the day…moved lower again and found buyers just above its Asian session low.  It then pulled back for 2 candles leaving a long upper wick before plunging lower.  We moved our profit stop down to allow for a retest of the Asian session low.  A long lower wick indicated that buyers were entering and we closed our trade on the following candle…giving back more than we wanted to of the move.

On Friday the EURUSD began to move very similarly to Wednesday.  It poked above its Asian session high and moved lower.  When price moved down and closed bearishly near its low, we entered short (with trend) risking 18 pips for a potential 67 pips to our daily target at 1.1738.  Price moved lower, then plunged through its Asian session low testing the previous day’s low.  We moved our profit stop down to allow for a retest of the Asian session low.  From there price went sideways… before finally closing below yesterday’s low.  We moved our profit stop lower to allow for a retest and we were closed the following candle.

This has been a great week to trade.   Looking forward to what next week brings us.

Enjoy your weekend!

The GBPUSD has been holding on to the technically significant  1.3550 area for over a week.  With a stronger USD today coupled with the US 10 yr yield back above 3%… we saw a uniform move across the majors.

We entered the GBPUSD short risking 15 pips for a potential 84 pips to our daily target.  The headlines about the E.U. stating that “the clock was ticking”… referring to the poor Brexit progress helped the move.

If the USD can remain strong and the US 10 yr yield stays above 3% …I expect the markets to be active as re-balancing takes place.

Good luck with your trading!

The EURUSD is the easiest of the major pairs to trade currently.  As mentioned last week, price traded below a technically important level which opened the door for further downside selling.  Geopolitical events can cause sudden unexpected back and  forth moves in the financial markets and with that said, the EURUSD looks like it may continue lower.

Today after the U.K. open, price tested its Asian low, bounced upward and then broke clearly lower with trend.  A short was taken risking 15 pips for a potential 49 pips to our daily target.  Price moved downward through yesterday’s low, then continued lower.  We tightened our profit stop in advance of the U.S. open and were quickly closed by the market…missing out on the final wave to the downside for today.

There will be some European bank holidays on Thursday, as well as the Bank of England monetary policy announcements.

On the geopolitical side, keep an eye on USD strength, gold and the bond market for guidance.

Good luck with your trading!