Forex Tips

As the USD continues to weaken, the other majors strengthen to it – except the JPY today.

The USDCAD closed below a very important technical level on the daily chart Tuesday. Today the move continued lower after an initial run higher early in the U.K. session.

As the pair rolled over, a short was taken risking 17 pips for a potential 66 pips to our daily target at 1.3402. Price moved down through its Asian session high, through its Asian session low to test yesterday’s low… just as the U.S. session overlap began. Our profit stop was hit and we did not re-enter the second wave lower as the reward for risk did not meet our criterion.

U.S. equities continue to move higher with many investors optimistically focused on positive test results for the coronavirus vaccine. The confirmed infection rate in the U.S. continues to soar in the meantime. The lack of a new fiscal stimulus plan for the U.S. at this stage, continues to weigh on the dollar as does increased tensions between the U.S. and China.

The March 9th low is the next test for the USD.

Good luck with your trading!

The market was very interested in the NFP number today which was very positive for the U.S. It took a bit of time for the USD to move upward, but the majors eventually turned to reflect a stronger dollar.

We entered the GBPUSD short risking 20 pips for a potential 83 pips to our daily target at 1.2406. What appeared to be a very nice short setup with good potential stalled out early. Buyers entered at an important technical level from the daily chart and our trade was closed… but at least positive.

On Wednesday a long was taken risking 27 pips for a potential 75 pips to our daily target at 1.2480.

As price moved up, we locked in more profit and came close to reaching our daily target but we closed the trade at the UK close just shy.

Tomorrow is the U.S. Independence Day holiday.

Good luck with your trading and enjoy your weekend!

Month end tends to be volatile with exaggerated moves in either direction often appearing to be quite random.

Although the EURGBP has been trending upward, the Euro was looking weak today and it was Sterling that was looking strong.

A short was taken after the pair made a third lower high in the session requiring a 15 pip stop loss for a potential 46 pips to our daily target at .9072. As price moved lower we removed the risk from the trade by moving our stop loss to a profitable position.

Price continued lower to test yesterday’s low – a level which was also a technically significant level on the hourly chart. We closed the trade on the bounce at the European close.

Trades in the USDCAD and GBPUSD were also very tradeable today.

The coronavirus remains very prevalent in the U.S. Some states that had been reopening are already shutting certain areas back down as the infection rates had begun to soar.

Tensions between the U.S. and China are picking up again as the preferential treatment of Hong Kong is suspended due to the new National Security Law introduced by China today.

Good luck with your trading in the second half of the year!

Mondays tend to be tricky days to trade. The EURUSD tried to climb higher today but stalled around 1.1285 and a short trade was taken risking 15 pips for a potential 69 pips to our daily target at 1.1205.

As the pair moved lower, it picked up momentum after closing within its Asian session range. It managed to move down to Friday’s high but stalled and found buyers in that area. The trade was closed at the U.K. close for a good start to the week.

The USD was fairly neutral today and the question is whether the DXY can move and stay above 98.00 before Thursday’s close. Friday will be a U.S. holiday and the NFP release will be on Thursday this week.

There are a number of institutions that are long the EURUSD so look for further buying on dips to 1.1200 and down to 1.1150.

Good luck with your trading!