With the trading month of November completed, Forex traders are heading closer towards the completion of the entire trading year. Will traders continue trading a few more weeks or have they already pocked enough profit?
This question always comes to mind as the end of the year comes closer to closer. Let us ask our blog readers: will you keep on trading? Are you satisfied with your trading and gains in 2014 or did you expect more? Let us know down below in the comments section!
What do I expect for the markets in December 2014?
In the last few weeks of this year I am expecting at least one more big USD strength push, which means a downtrend continuation for the EURUSD and GBPUSD and an upside for the USDJPY. After that, I would not be surprised to see a big consolidation in the near year for the first quarter of 2015. Let us review these currency pairs specifically.
The EURUSD remains in a big downtrend and the monthly bottom and support at 1.20-1.2250 has not yet been reached. The big bearish daily breakout candle has been fully retraced and “squared up” and hence I am expecting the downtrend to continue in December at any time.
Of course there is always the risk that price can make one more retracement before the downtrend continues. In that case the 2nd push up could bring price close to the previous top at 1.26 and stop at the 78.6 or 88.6 Fibonacci retracement levels (blue Fibonacci tool). Basically, as long as price stays below 1.26, I remain heavily bearish.
Short trade setups from the higher Fibonacci levels for bounce of support trend lines for break out setups
Exactly the same analysis is valid for the Cable: downtrend continuation should be expected but a bigger retracement could always occur. Only when the bigger top is broken would I consider the bearish trend to be potentially over.
Last but not least, the same analysis is also valid for the USDJPY. I am also expecting the USD strength to push the USDJPY to higher levels. Only when the support trend lines are broken would I consider the bullish trend to be potentially over. Any target should aim for below the 120 resistance level, which is a psychological round number.
What do you think of these currency pairs? How are you looking to trade them in December?
Hope you had a lovely Thanksgiving and enjoyed the time with family and friends. Wish you lots of trading success in December. Thank you for reading this blog post and Happy Hunting!
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