Hello Forex Traders,
With the holiday season around the corner, Forex traders need to either entirely avoid trading at all or at the very minimum become very cautious when trading. In my opinion, the best recommendation is to avoid live trading.
THINGS TO DO DURING THE HOLIDAYS
The holiday period is a great time to relax and enjoy the time with loved ones – and I hereby take the opportunity to wish you a great week!
If one wishes to work a bit before or after the holidays in the field of trading, then a Forex trader can best spend time here and there on other very productive and important tasks (instead of actual live Forex trading), such as for instance:
- Join Tim’s webinar on the Asian Mirro Strategy
- Join our Forex Trading room to be prepared for 2014
- Paper trading
- Back testing
- Updating trading plan
- Updating strategies
- Reanalyzing usefulness of tools and indicators
- Reading about Forex related topics
- Assessing filters
- Formulating 2014 goals
- Evaluating 2013 performance
- Assessing one’s SWOT and trading personality
There is never ever a reason to sit on one’s hands, except when executing a trading plan and the market environment and plan are not yet in sync 🙂
With that said, let us take a look at a couple of currency pairs… but from my perspective, this is just to “keep in the loop” with the market movements for 2014.
The EURUSD could not break the resistance level at 1.383 so far, which was the monthly top and yearly high (brown). Last week’s weekly candle in fact shows a bearish engulfing twin at the confluence spot of two trend lines (brown and orange).
Obviously the EURUSD is stuck in a sideways range from a longer time perspective – although the FOMC decision might alter the fundamental picture sooner or later.
Key levels to keep an eye on are:
a) Resistance lines (orange and brown)
b) Support lines (green and lavender)
c) Long-term wedge lines (purple)
The Cable seems to be building an expanding wedge chart pattern formation (magenta), with its higher highs and lower lows structural pattern. Usually speaking this is a continuation pattern for more upside trend continuation.
Other items aiding the uptrend follow through are:
1) Price bounced off of the broken weekly resistance trend line (purple) to the upside.
2) There is sufficient space to the next resistance (brown) level at 1.6750.
3) The uptrend channel (blue) is very well built.
The USDJPY broke the yearly high and monthly top for the 2nd time in a row (highest red). The bullish breakout seems to be well built (blue uptrend channel) and the resistance (red) is not able to contain and stop it.
At this situation a continuation of the trend within the channel (blue) seems a high probability. The holidays could certainly slow down price movement. But as soon as the market picks up speed after the holidays, then Forex traders should be on guard for trend continuation. And don’t forget to scale-in and scale-out when this happens.
Will you be looking at Forex trading this week? If so, what will be your most important tasks?
Let us know down below!
In the meantime, wish you a great week and thanks for sharing this article!!
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