SC Trading Weekly Report

SC Trading Weekly Report

FX Week In Review

USD

The DXY rose 0.7% last week to close at 96.36, a week of strength with the Daily 200 MA holding price from last week. We also have some optimism for the US trade talks, but some rumours moved the Indices.

EUR

The EXY fell over the week ending at 113.70, due to stubborn sub 2% CPI data and the background noise of Italy!

GBP

Another momentous week in the Pound, which obviously means we are not trading it, the Parliamentary vote happened with the Government being soundly beaten, which saw the Pound fall then rise on sentiment. We also had a confidence vote that PM May survived. Overall the GBP gained 0.3% against the greenback and 1.2% against the EUR, plus up 1.4% against the JPY!

YEN

The Yen continued to give back last week, the USDJPY perked up and rose 1.1% finishing at 109.77 to keep a good correlation with equities.

Precious Metal

With Dollar strength and risk-on we saw Gold fall 0.5% at $1280.87, with a nice fall out of the triangle pattern, plus Silver followed with a 1.6% fall to $15.319.

The Week Ahead

The month is moving along, and volatility has stayed high, with some New Year themes continuing, we still have the partial shutdown in the US, with the discourse becoming more febrile and the President offering a compromise that was roundly rejected by the Democrats, so President Trump jumps to Twitter to lambast the whole situation.

This has consequences for us as the US numbers are limited and data releases will continue to be curtailed, providing an uncertain picture of the US economy. Plus, when the shutdown is lifted, we may get a barrage of numbers that could lift volatility further.

In focus continues to be the US economy, the shutdown and the US/China Trade Talks, Brexit will always be in the headlines as the UK Government has 3 days to come up with alternatives due to an amendment, and the March deadline draws ever closer.

Data this week, will see the BoJ and Norwegian interest rate decisions with no changes expected. The UK will have Earning figures but how they will be view in the Brexit light is anyone’s guess. We also continue with more CPI & PMI prints.

Another great week with lots of opportunities we hope, Happy Trading!!

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 USD and staying away from the GBP around renewed Brexit shenanigans (as from the last 2 weeks).

So Last week we talked about the EURUSD and if 1.145 can break, for the next leg lower, into 1.1421 and 114 area. And this trade worked perfectly with a nice break of 1.145 and then moved lower to 1.14 and even into the 1.1360 area.

We will be keeping our eye on the CADCHF to see if the break of the upper trendline continues to target of 0.7559. We will also be looking at the USDJPY and if the 50% retracement of the move down will break with 110.74 coming into focus. We will also have an eye on the AUDUSD and if the 0.7161 area will break will this open up the 0.7106 area.

Trade of the Week

So, last week we looked at the NZDCAD, we wrote. We will look for a trade below 124.20 and target 123.36/123.00’

The trade started to work well, and we fell from 124.20 and we got to 123.40, 4 pips from our first profit target, but we then had some indecision and then moved back to resistance of 125.13 area.

We will be looking at the EURCAD for the ‘Trade of the Week’ we can see that this month has been very negative and has nearly taken back all the gains from December and we still have 2 weeks left of January, so will this continue?

Last week we saw the break of 1.5214 and the 100 week MA (1.50502) is holding price, with the daily chart focusing in on the 1.50502 area, we also see a few month trendline which has been broken. We will see if off the daily chart the underside of the trendline is tested to unwind the oversold conditions before price continues it fall to the 1.4917 area.

We will look for a trade below 1.5070 (with negative price action) to target the 1.4920 area.

Weekly Progress Report

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

So, we had 3 Trades only, on the 14th January we looked for a short on the AUDNZD, but the 4 Hour 200 MA held price and we never fell below to have an opportunity then we broke higher and the trade was invalidated.

The 15th January brought a Sell Trade on the USDCAD with a fall below minor support of 1.3240 area and we never closed below and moved sideways. So, we never got into this trade.

And Finally, on the 17th January we looked to get into the CADJPY on a sell trade, and even though price fell below 81.95 and got into 34 pips of profit, price action rejected the lower levels and we got out with a small loss.

We aim for a long-term view to make consistent pips on the reports and will be back Monday with a great trade idea.

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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About Author

Simon Cotterill

After a long break to revamp the company and provide a new offering we have launched our new website and products! Please check out http://www.sctrading.co.uk Follow me on Twitter as I am going to be posting some reports and trades: https://twitter.com/SimonCTrader The new website will launch at www.sctrading.co.uk To subscribe to our New Daily Trade Reports for a free 7-day trail, please visit www.sctrading.co.uk/subscribe If you have any questions, please contact us on info@sctrading.co.uk and one of our team will get back to you.