Happy Friday traders, welcome to another daily live technical analysis breakdown.
Every Friday, we do a trade recap going over our trades and what to expect for the following week. We captured a few big winners, and also had a few losers due to unpredictable factors this week. We still ended off with a positive +153 total pips. Today, we took a look at some of the major pairs and found that there could be a potential push up against the US Dollar.
This week we had some great winning trades in GBPAUD, AUDNZD and Crude Oil. These trades played out perfectly with our price action strategy. We were able to secure +110 pips from GBPAUD, +35 additional pips from AUDNZD and around +200 pips from Crude Oil. We also had some unfortunate losses, one came from GBPAUD which was stopped out due to spreads reaching +30 pips. Another unfortunate loss was with our GBPUSD short, which activated and then immediately bounced us out. Both trades, led to a combined loss of -86 pips. There were other great setups that we never had the opportunity to enter due to market consolidation.
We then took a look at the EURUSD, XAUUSD and GBPUSD. At a quick glance at all 3 major currency pairs, price action indicates potential weakness of the US Dollar next week. Currently, with hammers and bullish engulfing candles printed at key support levels, it looks like these currency pairs are priming up for a big rally against the US Dollar. We can expect a move to occur as next week is Non-Farm Payroll (NFP) week.
We ended off our live session by talking about Why You Should Consider Not Trading During the Month of December.
In short, the low liquidity, low volume, increased spreads and uncertainty, are all reasons why you should limit the amount of trading during this time. Trade signals will become less and less apparent on the charts as well as their respective movements. As Forex traders, we are actively trading for most of the calendar year, so it’s healthy to have a month off to relax, enjoy the holidays with your loved ones, and prepare for the new year. As next week is the Non-Farm Payroll news release, this is more of a reason not to trade. Remember, capital preservation is key. As most of you know, RP Forex will be going on a business trip to Miami next week and won’t be back until Thursday, December the 5th, which is when the live trading sessions will resume.
We hope you all have a great weekend, and enjoy the start to the holiday season!