FX currency pairs to watch between 12-16th December 2016
With most sharks and small retail traders signing off from their trading desks to celebrate the festive season,we are expecting very little activities in the FX market in the coming weeks. I have also observed that my Bollinger Bands are narrowing the gap between themselves each day, which is an indication that market activity is subsiding. The market won’t come to a grinding halt although. But we will surely see reduced level of activities as we approach 25th all the way to 5th of January 2017.
Meanwhile, before you and me can retire from trading until next year, we need to keep watch over the following currency pairs. If good price action signals form, then we still might be able to collect last minute profits. So here we go:
All FX pairs consisting of the JPY have been showing a strong uptrend lately. This trend is not likely to be reversed soon. We know this by looking at what price has been doing on the charts. The RSI for most currency pairs with JPY are suggesting that price is approaching the over-bought zone.
We also notice that AUDJPY is approaching an area that has proven to hold as critical resistance zone. So will price break this resistance or will it attempt to do so and then turn back in the downward direction afterwards.
Probably we should wait for confirmation before buying. We shall need 1 or 2 strong bull bars to buy. Otherwise, step aside and wait.
The market was ranging, then it dropped for a chance to sell, and now it’s kind of ranging again. Volatility is subsiding, and if you check the last 3 candles on the daily time frame, there is evidence that the market is getting choppy. Again, we should probably sit back and wait.
My take is that price might go down. So if we can have good sell signals, we will be looking to go short — although there is no telling when this will happen.
This pair is on a downtrend on the daily timeframe. The market started ranging with clearly defined entry and exit points for buying and selling. But still, we had a strong bias towards the downtrend. Now we are in an areas which is considered a strong support zone. If we can get one bullish confirmation, this can be all we need to Buy with 10-20pips Take Profit target.
4 EURCAD, USDCAD and other CAD pairs
The downtrend is good for most FX pair containing the the Canadian Dollar. I actually made a lot of profits from the slopping trend seen in the USDCAD daily time frame chart. This week, we should be looking for more opportunities to sell because support seems to be very far for these currency pairs.
The dragon is currently playing near a critical area which could test and hold as key support. The general trend remains a downward slop. Let’s be on the lookout for opportunities to sell.
If you don’t have a sound trading strategy for the EURGBP, stay away from it. This currency pair is the most volatile and can build or kill your account quickly. Know how to handle it, and you will laugh all the way to the bank.