Year end moves (Dec 12)

Last week and the week starting on Monday are practically the last trading weeks of the year. We are observing moves that are mainly due to year end closing of positions. Those moves are not necessarily based on fundamental reasons since traders prefer to close their positions and get flat before going on holidays. Same applies to multi-national companies that keep funds in various currencies. Mrs Yelen is probably going to announce on Wednesday an increase in USD interest rate and such a decision could move all pairs by hundreds of pips.
As far as I am concerned, it seems that I am out of tune with the market. Both trades (a short on Gbp/Aud and a long on Usd/Jpy) that I opened this week are under water and it looks like I will have to carry them onto next year. For this reason I will not recommend or open any new trades till January 4th. I will continue doing my weekly analysis but I do not expect anything dramatic after the FOMC meeting.
The only move that is backed up by fundamentals is the CAD drop, mainly due to OIL decrease in price. Oil was trading at 40$ at the open of the week and dropped to 35,24 and closed without lower wick indicating increased pressure on the commodity. The Usd/Cad is trading at levels going back to 2004.
Because of increased demand for the tools I am using, I will upload them to my site and you can download them directly. I will also create short videos explaining the way to use them. This is the LINK for the downloads

 

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