The last full trading week of 2020 is finally in the books. Many traders were able to secure a good deal amount of profit all thanks to the rapid depreciation in the Dollar. Trade setups for EURUSD and AUDUSD seemed to be the most popular among traders.
After attaining 89.88, the US Dollar Index (DXY) retraced slightly to the upside. This was expected as this level was previous support for several months back in 2018. Price action traders were wary of this and decided to secure profits for their EURUSD trade at a gain of +63 pips. The key level of 1.22500 needs to be breached on the higher time frames for upside momentum to continue.
As a result of the DXY retracing, AUDUSD gains were also set to slip. Price action and smart money analysis was able to get traders out of the trade after reaching the key level of 0.76300. Traders were able to gain a respectable +91 pips of profit from this pair. Technical analysis suggests that the price needs to break 0.76300 on the higher time frames for further upside.
If traders needed three reasons to avoid trading during the holidays, they are as follows: low liquidity, high volatility (unexpectedness), and reduced broker trading hours. All in all, most seasoned traders will use the time to reset and to charge so that they can excel in the new year. Trading can be taxing and stressful at times, especially during a pandemic. Recharge, regroup yourself, and get ready for 2021.