In our Daily Trade Watch, we take a look at some high probability trade setups that we look to trade over the course of the day. Today, we will be looking closely at Dollar strength.
There is potential for sustained strength coming back into the dollar after a week of weakness and indecision. When you see trading conditions like we see today, there clearly exists an opportunity to trade a number of Dollar major pairs. With this in mind, it is important to create a hierarchy of opportunities which will assist you with trade selection.
USDJPY
So today, we have identified a high probability technical trading opportunity in the USDJPY market. We have seen a strong pullback from last weeks highs to a strong level of support around the 111.00 level. This can provide us with a strong opportunity to buy this market. However, this is only if price breaks above yesterdays highs of 111.54 and the market conditions are right.
USDCAD
It is a very similar situation for the USDCAD. Certainly looking at this market again from a technical perspective, we can see a strong level of support around the 1.3100 level. So, the trade idea is to look for opportunities to buy this market above yesterday’s high of 1.3180.
Just remember, as we move into summer trading conditions, normal trading volumes reduce. This allows for more manipulation and erratic price action so always have a strong approach to both risk management and trade management when you are in the trade.
Looking Closely at Dollar Strength – Full Analysis
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