Forex Tips

The USD was weaker today as we close the trading week.  A very light news day with gold and commodity prices on the rise.

A long setup was found in the AUDUSD risking 8 pips for a potential 55 pips to our daily target at .7312.  As the U.S. session got underway, the pair went vertical, retested its Asian session high and jumped upward to close above our daily target.  We moved our profit stop to our daily target and price came back to take us out of the trade.

The USDJPY was also an attractive trade today.

Good luck with your trading and enjoy your weekend!

On Monday, which was a North American bank holiday the EURUSD finally broke the 1.1300 level and quite decidedly as it moved down to 1.1215.

On Tuesday, it would be normal for it to retest the 1.1300 level and we would discover if buyers or sellers would prevail.  Having found support around 1.1228 price began to move upward.  A long was taken risking 13 pips for a potential 51 pips to our daily target at 1.1299.  We removed the risk from the trade in advance of the U.S. open.  After  a very bearish candle closed on its low, we moved our profit stop up a little further.  Price continued upward and after another bearish candle with a long upper wick formed, we tightened our profit stop and our trade was subsequently closed.

On Wednesday,  after initially moving down to begin the U.K session, price found support around 1.1265 and began to move up.  A long was taken risking 10 pips for a potential 80 pips to our daily target at 1.1352.  Price moved higher and we protected ourselves by moving to a profit stop in advance of the U.S. open.  Price continued higher but was unable to sustain above 1.1300 and we closed the trade as it reversed.

It would appear that both the EURUSD and GBPUSD are moving higher on positive Brexit headlines, but until there is a deal, these moves tend to be fleeting.  The GBPUSD is extremely susceptible and volatile.

We are also seeing money flows to the JPY as risk-off sentiment is evident by looking at equity markets, gold, 10 year yields and USD weakness.

Good luck with your trading!

 

 

 

The major event risk for the week was the outcome of the U.S. mid-term elections.  The market was not caught off guard, as it had anticipated a divided Congress with a Republican Senate majority and a Democratic House of Representatives majority.  The U.S. economy will continue to be very strong and the Fed will continue to raise rates going forward with a 78% probability for the next hike being in December currently priced in.

The USD is stronger today and a long was taken in the USDJPY risking 8 pips for a potential 32 pips to our daily target at 113.99

By the end of the of the U.K. session, we had not reached our target and closed the trade for a modest return.

An alternative trade today was the EURGBP as the EURUSD moved down and the GBPUSD moved up.  This is a relatively easy trade to get into when opposing direction is seen between the Euro and Sterling crossed against the USD.

There were other good trade setups today and hopefully this will continue with the mid-term election results now history.

Rumours continue regarding a Brexit deal being almost completed, but there is no deal until an accepted solution is agreed upon and we are not there yet.  Be cautious in thinking that the GBPUSD will be headed back to 1.5000 just yet.

Good luck with your trading!

 

Traders have been awaiting the results for the U.S. mid-term elections.  The EURUSD oscillated up and down today in a fairly subdued range.

The pair made a higher lower with a bullish engulfing candle closing back within its Asian range and an entry long was taken risking 10 pips for a potential 65 pips to our daily target at 1.1466.  Price moved higher slowing to retest its Asian high before moving higher.  We tightened our profit stop and were taken out of the trade as price abruptly reversed.

The USD is likely to strengthen if the Republicans maintain a majority in Congress.  Should the Democrats win the majority, the USD is expected to weaken.  Anticipate an active Wednesday in the financial markets.  It will be exciting one way or another.

Good luck with your trading!