Forex Tips

This trade was very similar to yesterday’s trade.

Price moved lower early in the U.K. session luring in breakout traders. We waited for it to pull back and move lower again before going short… risking 8 pips for a potential 31 pips to our daily target at 1.1860. Price moved lower after our entry but pulled back making a third lower high at the beginning of the U.S. session. The pair then moved down to our target where we exited the trade as USD strength continued today.

The pair could test 1.1800 and even 1.1700 in the coming weeks. Ranges continue to be subdued currently.

Tomorrow is a holiday in Canada, followed by NFP on Friday and a holiday in the U.S. on Monday.

Good luck with your trading!

Trading has been slower the past couple of weeks, as if the market is awaiting a new catalyst. The DXY is technically bullish and remains so above the 91.45 currently.

My preferred pairs to trade have been the GBPUSD and the USDCAD, but I haven’t had any runs over 20 pips the past 2 weeks. Today however the EURUSD looked good. Early in the U.K. session the pair moved below its Asian session range and dipped just beneath yesterday’s low before pulling back into its Asian range. As it broke lower a second time beneath its Asian low, a short was taken risking 10 pips for a potential 26 pips to our daily target at 1.1877.

A 10 pip stop loss is not much of a hit if the market goes against you, as long as you’re using proper money management. It took an hour or so before the pair moved lower and it retested its Asian low one more time before it did. Going into the U.S. Open, we moved our stop loss lower taking the risk out of the trade. Long lower wicks began to appear indicating buyers were entering, so we moved the profit stop down to lock in profits and fortunately price moved to our target where we exited just in advance of a pullback.

At times the market has tighter ranges and lower volumes but trades of 10 and 15 pip gains really add up over time with proper money management.

Good luck with your trading!

As the dollar strengthened today, a long was taken in the USDCAD after it pulled back into its Asian session range and bounced higher. The entry required a risk of 13 pips for a potential 34 pips to our daily target at 1.2134. With the compressed ranges of the pairs earlier in the week, it was not a surprise to see them extend today… coupled with the strong USD move higher.

Price moved to our target in the U.S. session overlap, then extended higher in the last 2 hours of U.K. trading. We protected our profits at our target level by placing our profit stop right at 1.2134. Price almost retested the level but moved higher and we stayed in the trade until the U.K. close. This was the third USDCAD trade in a row.

Most of the majors had nice setups today so overall it was an excellent day to find trades.

Enjoy your weekend and good luck with your trading!

The majors had some news to digest today as the U.S. jobless claims and CPI numbers were released. This was coupled with the ECB interest rate decision and President Biden’s meeting with U.K. Prime Minister Boris Johnson.

As the U.S. S&P 500 attempted yet again to make an all time high, the USD began to weaken and a short was taken in the USDCAD risking 15 pips for a potential 38 pips to our daily target at 1.2062.

Price moved below the 1.2100 figure and was able to take out the spike lows from the earlier news reaction.

Price then left a long lower wick underneath 1.2075 as buyers entered. We further tightened our profit stop to 1.2080 and our trade was closed on the next candle as price reversed higher.

Friday is light on economic news releases but with President Biden overseas… there will be lots of foreign coverage as his meetings progress with world leaders over the next week.

Good luck with your trading!

It’s been a very slow week with most major pairs trading in subdued ranges.

After the Bank of Canada rate statement today, a long was taken in the USDCAD risking 14 pips for a potential 50 pips to our daily target at 1.2120. Price moved higher as the DXY moved off its lows. Price continued upward and we quickly locked in profit moving our stop higher. Price climbed then paused at its Asian session low… unable to sustain above the 1.2100 figure. We tightened our profit stop as we were approaching the end of the U.K session and price came back to close our trade.

Thursday will have numerous important economic news releases, so keep an eye on the economic calendar. U.S. Core CPI and Jobless Claims will be closely watched along with the ECB.

Good luck with your trading!

The U.S. economy is very strong and posting some record high economic numbers.

During the Asian session the GBPUSD moved lower and then pulled back in the early European/UK trading. Price moved up to test the 1.4200 figure but failed above. The pair moved lower to retest its Asian high, bounced and made a lower high going into the U.S. session overlap… in advance of the economic news releases. The DXY continued to strengthen and a short was taken risking 15 pips for a potential 40 pips to our daily target at 1.4116.

Price continued lower through its Asian session low and closed just beneath our target which we protected. Price attempted to push lower and as it came back to yesterday’s low, we closed the position.

Price direction versus the USD was highly correlated in all the major pairs. A JPY long was also a nice trade.

Be cautious around trading before the NFP release tomorrow. Expectations will be high.

Good luck with your trading!