Forex Tips

The USDCAD moved up in advance of the U.S. session overlap then created a reversal pattern closing back down beneath its Asian session high… which enabled us to enter short (with the trend) risking 12 pips for a potential 58 pips to our daily target at 1.2022.

Price moved lower and we took the risk out of the trade by lowering our stop loss in advance of the U.S. open. We wanted to allow for some volatility as news was pending for Canada. The news was favourable and oil was higher which enabled our trade to move lower with momentum. We closed the trade at the U.K. close for a nice gain but well short of our daily target.

Be cautious of buyers entering this pair near 1.2000. If 1.2000 is breached price could test May 2015 lows around 1.1920.

Good luck with your trading!

The DXY which has been struggling to stay above the 90.00 level of late, ran up to test its December 17th low around 90.47 in advance of the U.S. session. The U.S. equity futures pointed to a positive open and the USD began to reverse.

Earlier in the U.K. session we found a EURUSD short setup risking 11 pips for a potential 43 pips to our daily target at 1.2137. This was not an ideal setup due to the entry being near the middle of its Asian session range, so a smaller position than usual was taken. The first levels to get through were yesterday’s low and the Asian session low.

We tightened our profit stop as we approached these levels. Price continued to fall going into the U.S. open and we continued to lock in profit where the first round of U.S. economic news closed our trade.

Monday is the Memorial Day holiday in the U.S.

Good luck with your trading and enjoy your weekend!

The USD has fallen against the Canadian dollar for 7 straight weeks.

As the U.K. session got underway today the USDCAD moved beneath its Asian session low luring in breakout traders. A pullback into its Asian range known as the “wash and rinse” followed and price began to move lower where we entered risking 10 pips for a potential 36 pips to our daily target at 1.2073.

As price moved lower we protected our profits, particularly in advance of the U.S. open. We closed the trade at our target.

Forty-five minutes after entering the USDCAD short, we entered the EURCAD short risking 14 pips for a potential 42 pips to our daily target at 1.4713. Price went sideways for an hour before descending into the U.S. open where we again protected our profits as there was potential for volatility with all the U.S. economic releases today.

Price continued lower and our trade was closed at our target.

The USDCAD is likely to find buyers near its September 2017 low at 1.2060 on its way to potentially test the 1.2000 level.

If the EURCAD continues lower, be careful around the 1.4600 figure down to 1.4580.

Good luck with your trading!

The GBPUSD tried to move lower early in the U.K. session but bounced at its Asian session low and moved up to 1.4233 where sellers entered. We went short at 1.4214 risking 20 pips for a potential 67 pips to our daily target at 1.4147. The trade moved lower and we moved our stop loss to a take profit in advance of the U.S. open. The news volatility closed the position and we entered short a second time at 1.4193 risking 15 pips for a potential 45 pips to our target.

Price moved lower to its Asian session low where it paused and struggled at first to move any lower then ultimately any higher. As we approached the U.K. close, price dropped again and we closed the trade.

A good week of trading after a slow start. Today the trading seemed more like a Monday than a Friday with mixed signals from our correlations. Cryptos were the topic of the week and further showed their potential for extreme volatility.

Good luck with your trading and enjoy your weekend!

The U.K. traders pushed the USDCAD just beneath its Asian session low where buyers entered near the 1.2100 figure. As price rose to test its Asian session high and yesterday’s high, sellers entered. A short was taken risking 16 pips for a potential 72 pips to our daily target at 1.2057.

Price continued lower as the USD faded and U.S. equity futures pointed to a move higher at the open. After clearing its Asian session low, price continued lower and we closed the trade at our target.

Friday will be newsworthy as the U.K. releases May PMI numbers, Canada will have March Core Retail Sales, and the U.S. will report Existing Home Sales for April.

Good luck with your trading!

A late day sell off in U.S equities on Tuesday coupled with crypto currencies selling off heavily today set up a tone of “risk off” trading today.

A short in the USDJPY was taken after a reversal pattern set up in advance of the U.S. session overlap risking 10 pips for a potential 50 pips to our daily target at 108.73. The trade moved down and we tightened up our stop loss in advance of the U.S. session overlap.

With flows moving toward safety, the JPY benefitted and the USDJPY dropped quickly to our target where we exited the trade. The FOMC meeting minutes were pending two hours after the London close but the markets were fearful with U.S. equity futures pointing to continued selling and cryptos plummeted.

On Thursday, we have initial jobless claims and Philly Fed manufacturing index releases pending.

Good luck with your trading!