Forex Tips

The daily ranges of the major currencies have been very subdued as the markets await the U.S. – China trade talks outcome. There had been optimism that an agreement would be completed this week, but President Trumps’ Sunday tweets have changed the likelihood of that happening.

On Monday there were major sell-offs in the stock markets around the world… attributable to “the tweets”. Today we saw a continuation of risk-off sentiment and we shorted the USDJPY early in the U.S. session overlap as price headed below its Asian session low.

The trade required a 10 pips stop loss for a potential 28 pips to our daily target at 110.29. Price moved close to our target and we exited at the U.K. close for a modest gain.

The recent confined ranges have made most of my trade setups very modest in returns… anywhere from 8 to 25 pips. I tend not to bother posting these small trades as there is not much to be learned from them. The markets will pick up again but this is as quiet as I’ve seen them.

Be patient and selective and you will be rewarded.

Good luck with your trading!

Today as the U.K. session got underway, the GBPUSD climbed above its Asian session high and tested Friday’s high. It then pulled back and went back and forth as the market digested Gov. Carney’s speech.

After it broke and closed beneath its Asian high, a short was taken risking 9 pips for a potential 53 pips to our daily target at 1.2884.

Price moved lower for one candle then tested its Asian high one more time before moving lower. We moved our stop loss to plus one and incrementally lower as price moved to test its Asian session low. Price went sideways in advance of the U.S. open and with news pending, we tightened our profit stop more. The news volatility closed our trade for a modest gain.

Monday trading tends to be a bit tricky as signals can be ambiguous. Today was no exception with both the USD index and gold being off.

Asian trading may be subdued this week as Japan is on holidays all week and China will be on holidays beginning May 1. Much of Europe will be off on May 1st as well.

Good luck with your trading!

The USD continues to strengthen and the GBPUSD continues to trend lower. Since the middle of March, this pair has been moving lower – making a series of lower highs.

Price tested its Asian session high today as U.K trading began and reversed lower. We entered short risking 8 pips for a potential 42 pips to our daily target at 1.2857.

Price moved lower testing and retesting its Asian low and yesterday’s low. After leaving a long lower wick, we tightened our profit stop – removing risk from the trade, and continued to lock in profit as price appeared to stall. The trade was closed in advance of the U.S. session. It’s very common to see a retracement wave in advance of the U.S. session as traders take profit, so it’s better to lock in profit than to give it back.

As the Brexit drama continues with delays and little progress, this pair continues to be a favourite of mine.

I will be away tomorrow.

Good luck with your trading and enjoy your weekend!

A fairly straightforward short today with the GBPUSD. Its attempt to move and stay above the 1.3000 figure failed and it moved down making a lower high. A short was taken risking 11 pips for a potential 27 pips to our daily target at 1.2974.

Price moved down and penetrated 2 technically important levels from the daily chart. We adjusted our profit stop to lock in profit and allow a retest of the daily technical level. Price continued lower and found buyers in the 1.2927 area. We tightened our profit stop more and after a higher low and our trade was closed before the U.K. Close.

Be cautious trading the GBPUSD due to it’s volatility. Keep stops tight and ensure the reward is worth the risk.

The USD continues to be strong but is testing its 2019 high so expect it to run into some resistance.

Good luck with your trading!

Trading has been very slow the past couple of weeks with tight ranges and light volumes. It’s been difficult to be rewarded for more than 10 or 15 pips trading the majors.

It seems like the market is waiting on it’s next big move…perhaps a favourable completions to the U.S. – China trade tariff talks, continued stronger than expected U.S. growth, signs of inflation in the E.U. or a resolution between the E.U. and Britain regarding Brexit will get it going again. The latter two scenarios are long shots at the moment.

The NZDUSD and AUDUSD have been moving lock-step lately but on Wednesday the NZDUSD dropped heavily and has been unable to recover… as it makes lower highs. It set up for a short trade today risking 11 pips for a potential 42 pips to our daily target at .6672.

Price moved down through the first half of the U.K. session and continued down as the U.S. session got underway – falling just short of our target as we exited the trade at the U.K. close.

I continue to remain USD bullish.

Enjoy the Easter long weekend. I am extending mine until Tuesday.

Good luck with your trading!

A very simple trade today in the AUDUSD as it failed to remain above its Asian session highs – after the poor JOLTs job openings release in the U.S. session overlap.

A short was taken risking 6 pips for a potential 49 pips to our daily target at .7098. Price moved lower to test yesterday’s high where it went sideways and the trade was closed at the end of the U.K. session.

Wednesday will be a busy day new wise as we have the ECB, FOMC and crude oil inventories…with oil being very topical of late.

Good luck with your trading!