In today’s live trading session, we went over the trades discussed in yesterday’s session, the US Inflation report and what trades to take next.
During yesterday’s session, we looked at several setups to trade for this week. NZDUSD and GBPAUD were both setups that presented viable setups. NZDUSD made a quick trip to take profit 1, before reverting back to our entry and stopping our partial position. GBPAUD created a 4hr closure that seemed decent enough to go long with a reduced position. But, shortly after entry, the pair had stopped us out at -45 pips. Not to worry, as in today’s session we have identified a possible short which will cover the loss of our first trade.
This morning the US Economy printed a CPI reading of -0.8% vs the -0.7% forecast. This led to modest weakness in the US Dollar against the majors, more so against the Australian and New Zealand Dollar. We will hear more about what this data means tomorrow when Jerome Powell speaks. As of late, many of the fundamental releases for the US Dollar have been mixed due to Covid-19, so there is really not point in trying to predict the results.
As for setups to take in the near-term, we have set our eye on a long for EURJPY and a short for GBPAUD. These setups are currently pending as we wait for the next few four hour candles to confirm our bias before entering. Being impatient can be costly, as was the case with GBPAUD. The trading week is still in its infancy and we have time to be patient. Later today we have the RBNZ Rate Statement which should be interesting and thus impactful on the market. As always, be safe and trade responsibly!
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