Forex Tips

Shorting the GBPUSD on a day of USD strength

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The recent rise in the GBPUSD makes one cautious when it comes to shorting the pair. After 4 lower highs today in advance of the U.S. session overlap a short was taking risking 16 pips for a potential 38 pips to our daily target at 1.4100.

The idea was to take advantage of the GBP pullback and to not get stopped out of the trade by the pending economic releases in the U.S. session. Fortunately price moved lower to test the figure, which was also our target and we exited the trade in advance of the New Home Sales and Powell’s second day of testimony on the U.S. economic outlook.

Good luck with your trading!

Trading the AUDUSD higher as the USD moves lower for a third day in a row

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A fairly simple trade to begin the trading week. During the U.S. session overlap the AUDUSD moved higher, pulled back for a two candles and moved higher off its trendline.

A long was taken risking 12 pips for a potential 25 pips to our daily target at .7917 – the March 2018 high. Price moved up to our target take profit level closing the trade.

A continued move higher may test .7934, .7988 and .8000 round number. A move lower may test the .7900 round number followed by .7885, .7850 and .7820.

The Bloomberg Commodity Spot Index is up 30% and Brent crude is up over 20% but the commodity currencies have not surged anywhere near. I have found the CAD and AUD pairs to be very tradeable lately, but have not had the time to post many of the trades. They are certainly worth keeping an eye on at this stage of the economic cycle.

Good luck with your trading!

Long the USDJPY as the pair continues to move higher since testing 104.40

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The USD has been showing strength versus the JPY since rebounding from a test of 104.40. Today the test would be the 105.50 level that would be telling.

After initially moving lower early in the U.K. session the pair reversed higher and a long was taken risking 14 pips for a potential 36 pips to our daily target at 105.67. Price moved higher going into the U.S. session overlap gaining momentum. We protected our profits as the pair moved higher, as we did our daily target at 105.67 once reached and the trade was closed.

The next levels above to keep an eye on include: 105.77, 106.00, 106.25 and 106.56. A move below 105.42 could move down to test: 105.26, 105.00, 104.91, 104.64 and 104.55.

Of the economic new releases pending, be cautious trading in advance of the ECB monetary policy statement and there will be lots of U.S. and Canadian news on Wednesday.

Good luck with your trading!

Shorting the USDCAD to end a slow week of trading

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The USD has been under pressure this week and so far 90.25 has held for the DXY. It’s been awhile since trading was as slow as it was this week. Ranges have been very subdued and Chair Powell’s dovish speech did little to attract USD bulls.

Today the USD showed some strength, but it didn’t last and a short on the USDCAD set up with a risk of 17 pips for a potential 45 pips to our daily target at 1.2694. I had a few trades today, but this was the best one.

The USDCAD moved up to the 1.2754 level early in the U.K. session then pulled back and rose again to the same level during the U.S. session overlap, but could not close above it. After a favourite 3 candle reversal pattern, a short was taken and price moved lower to test its Asian session high, then moved down sharply to our daily target where we exited the trade in advance of the U.K. close.

This pair tends to move well during the North American session but can also move well when oil is on the move or making headlines.

We never know exactly when trading will be very active or very slow but it’s worth showing up each day to find out… if you can.

Today was a great way to end the slow week. It’s a long weekend in North America.

Good luck with your trading, stay healthy and enjoy your weekend!

Shorting the AUDUSD as the DXY continues higher

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The USD continued higher today and gold continued its move lower.

A short was taken in the AUDUSD risking 11 pips for a potential 43 pips to our daily target at .7575 (not shown).

Price moved lower stopping at the .7600 figure where it found some buyers, then moved lower before retracing 10 pips going into the European close where our profit stop was hit.

Tomorrow be cautious trading in advance of the NFP release for January in the U.S. and the Employment Change for January in Canada.

The EURUSD closed well beneath the critical 1.2000 level today. It will be interesting to see how the USD finishes the week.

Some important downside levels for EURUSD bears to watch for include 1.1945, 1.1900, 1.1800, 1.1695, 1.1604. 1.1495.

A move higher above 1.2011 could test 1.2054, 1.2100, and 1.2190.

The vaccine progress in the U.S. and U.K. has been giving their currencies an advantage over the Euro.

Good luck with your trading and stay healthy.

Short the USDCAD as WTI oil moved higher today for a second day in a row

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It was an interesting way to begin the month of February with the USD, equities, bonds, gold and oil all moving higher yesterday.

Today with equities up again, the USD was still able to move higher. Gold did not fare as well, but oil is continuing upward.

The USDCAD made a wave higher as the U.S. session overlap got underway and moved up to test its Asian session high, then yesterday’s high just above that… but failed and began to move down. A short was taken risking 21 pips for a potential 92 pips to our daily target at 1.2756.

Price descended through its Asian session low, but failed to continue much lower and the trade was closed at the U.K. close.

The USD which sold off last year appears to be finding buyers this year. What a difference a month can make. We will see where it goes from here.

Good luck with your trading and stay healthy!