Turning some attention away from the majors and onto the currency crosses, we kicked off the week looking for EUR/GBP to bounce.
As you can see, price pulled back to this support/resistance zone that had seen a reaction multiple times over the past six months.
Like clockwork, the higher time frame level held and there were multiple opportunities to get long on pullbacks where your stop would have never been under risk.
Excellent setup that played out with perfect technical structures.
Tuesday saw us take a look at the USD/CAD daily zone that we’d also had on the watchlist for months.
“Not the type of setup I am jumping out of my skin to take, but when the level comes back into play, you certainly have to take notice.”
I was cautious as this level had been chopped through back and forwards on its most recent tests.
Just another reason to look for a short term confirmation when you’re looking for an entry level.
A confirmation that never came.
We never got out of the higher time frame resistance zone and there was no re-test of a short term previous level of support as resistance. Just higher lows.
Caution justified and kept us out of a poor setup.
Wednesday gave us an opportunity to short AUD/JPY.
Higher time frame resistance held and then the market gave you TWO (the green markers below) chances to get short.
This one truly was a Christmas gift that I hope you spoiled yourself with.
Really winding down into Christmas, we yesterday took a look at some of the gaps in Oil and whether we could trade into the most recent one.
The most recent gap was there for the taking as price stalled around 50 pips above it after that strong momentum drop.
You’re better off not asking why gaps fill… Markets are just a reflection of human behaviour and as I said on Twitter yesterday, humans are dumb.
Gap filled. Good job humans.
From everyone at Vantage FX, I want to wish you all a Merry Christmas. See you after the break!
Dane Williams – @VantageFX
Do you see opportunity trading forex? Trade with Australian regulated forex broker, Vantage FX.
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Forex broker Vantage FX Pty Ltd does not contain a record of our prices or solicitation to trade. All opinions, forex news, research, tools, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently, any person acting on it does so entirely at their own risk. The expert writers express their personal opinions and will not assume any responsibility whatsoever for the Forex account of the reader. We always aim for maximum accuracy and timeliness, and FX broker Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on this service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.