SC Trading Weekly report

SC Trading Weekly report

SC Trading News

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FX Week In Review

USD

From our interesting week in the USD we continued the gradient and fell 0.6% in the DXY, finishing at 95.66 which is an interesting technical level. We will see if the Shutdown or China or even a Trump Tweet will affect the Greenback this week.

EUR

A bit of a non-week in the EUR, we had weak German data and the ECB provided no new information to move the market, but the EUR held up well with a 0.6% rise in the EURUSD.

GBP

Well here we go again, meaningful vote week. (Tuesday 15th) So last week the Pound was under pressure with uncertainty. Political news is batting the Pound around like a ball in the Australian open! Will the vote happen? Probably yes, this time with the mostly likely outcome being a no vote, but the permutations of that outcome, is the uncertainty, we could see a vote of no confidence, an election, or as the Pound rallied on Friday even maybe a postponement of the March Brexit deadline! But who know…We know, no one! So, no trading the Pound this week!

YEN

We gave back some of the Yen gains last week, apart from the USDJPY which was quiet and flat, we will see if the USDJPY perks up this week.

Precious Metals

Yes, was the answer to the question did NFP pause the move, and we traded flat last week in Gold and Silver. The metals did not take advantage of Dollar weakness and closed at $1287.41 and $15.57

The Week Ahead

We are into our third week of the year and still very interesting to see how the start of the year will go, we calmed down a bit from the explosive start to January, but the US still entertains with on going China talks, the US Government shutdown continues (the longest in history now) and President Trump keeps up his tweets with suggesting the Chinese were more honourable than the Democrats, Trump negotiation tactics at its best! We also still have in the back ground the NY Times and Washington Post writing about President Trump being investigated for working with Russia and destroying translator notes, so the collusion story is never far away.

Across the pond, we have touched on the UK Parliament vote and we will see the outcome and then fall out later in the week. But we suggest a wide birth for the Pound pairs until a road map is set in place.

So, this week UK uncertainty continues unless some miracle happens and we get clarity, the US-China talks conclude and we will see if a mutual beneficial arrangement can be found.

Data wise we have some CPI and PPI releases from the UK, Germany, Switzerland, Canada, US and the Eurozone, but some information from the US will be postponed due to the shutdown. 

Major Data Releases

*Data Supplied by fxstreet.com

Currency Pairs to Watch

We have the ‘Trade of the Week’ below and we will be keeping an eye on the Yen and staying away from the GBP around renewed Brexit shenanigans (as from last week).

So Last week we talked about the EURJPY retracing back into the 125 area, which worked very well, and this had led us to the EJ being our trade of the week. (See below) We will also apply some similar analysis to the CADJPY it is not looking as good as the EJ, but we will look for some weakness off the resistance level of 82.45.

The NZDUSD was also mentioned ‘will continue a move up above the recent highs into the 0.6789/0.6800 area.’ And this idea worked perfectly, with Fridays high at 0.6844.

We will also be looking at the EURUSD and if 1.145 can break, for a next leg lower, into 1.1421 and 114 area.

Trade of the Week

So, last week we looked at the NZDCAD, we wrote. We will look for a continuation of the fall below, 0.9000 area into 0.8899 and 0.8821

The trade started to work well, and we got within 16 pips of the first target before coming all the way back to entry were, we are hanging around now. The weekly candle shows rejection but not quite a reversal, so we took some pips and will see what happens.

   

His weeks ‘Trade of the Week’ we will look at EURJPY this week, we love the structure of the market and price action determining our thought process. We saw the flash crash (price came close to a long term trendline) and the move back up last week, we moved back to such a great level of 125.13, which was a great previous support area and now resistance. Then on Thursday we (nearly, nothing is perfect in trading) engulfed at this level and then had a negative candle. So, we will see if this continues this week to retest the 123.00 round number.

So, we will look for a trade below 124.20 and target 123.36/123.00

Weekly Progress Report

We struggled a bit to find trades last week that where not mentioned in the Weekly Report.

So, we had 3 Trades only, the USDJPY on the 7th January which did not trigger as we just moved sideways until later in the week, and we did not take this trade.

The 8th January brought to you a sell idea on the NZDUSD and we fell below 0.6726 but only got into 19 pips of profit with a low of 0.6707 before turning around and stopping us. But if you note from the price action showed uncertainty so we had an indication we got it wrong.

Finally, the 11th January USDJPY Sell did not trigger! We will have some weeks that are a bit messy, but we do not send a Report for a Report sake. We will only want great trade ideas and as with trading it is a slow and steady race to be consistent and we will be up over the months and years.

Please look to Subscribe at https://www.sctrading.co.uk/subscribe for a free 7-day trial. As the New Year will bring some great Daily Trade Ideas!

HAPPY TRADING!

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