SC Trading Weekly report

SC Trading Weekly report

FX Week In Review

USD

The Dollar has held the move up, with the DXY rising 1.1% to close at 96.64 and will be reaching an important technical resistance zone.

EUR

A little bit of pressure on the Euro last week with some below expectation economic data, with the EXY closing 0.87% down at 113.50.

GBP

An unexpectedly quiet week in the Pound, with the UK Parliament in recess and a pause in Brexit news.

YEN

The Yen continues to be quiet with sideways movement. We continue to look for the breakout.

Precious Metal

Metals showed they are resilient with the moment of a strong Dollar, which shows Gold and Silver has some strength. Both Gold and Sliver did fall slightly over the week to close at $1313 and $15.80 respectively.

The Week Ahead

We sit and wait for news on Brexit and the US/China trade talks, last week we had little progress and no conclusions yet, we did see some market moves last week.

Data releases provided some surprises, with New Zealand employment data disappointing but on the reverse Canadian employment rocketing. On the rate front we saw no change from the BoE, RBA and Banxico but the Australian Central Bank shocked the market with a statement about the next rate decision is not certain to be a hike.

But of interest last week was the Eurozone, with Italy in recession amid sluggish eurozone. Italy’s economy tipped into recession at the end of last year, according to latest figures. In the final three months of 2018, the economy shrank by 0.2%, following a 0.1% decline in the third quarter. We also saw poor numbers from Germany, and this could tip the whole Eurozone into recession, with the ECB at zero rates, what weapons do they have left if this happens?

We look ahead with a focus on Prime Minister May in Europe for talks with the EU/Leaders, plus back at home with her own MP’s and the leader of the opposition to try give herself more time to get a deal and change to the wording on the Backstop. With regards the US the trade negotiations will not have any conclusion before the 1st March.

Data we will be looking at CPI’s from the UK, Switzerland, Norway and the US. We also see GDP from Japan, Eurozone and the UK.

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 again on the EUR and staying away from the GBP around renewed Brexit shenanigans (as from the last 5 weeks).

So Last week we talked about the EURJPY and the 125.13 level we pushed up to 125.96 so some good pips before economic data put pay to the technicals. The AUDUSD did not play out and fell back to support of 0.7051.

This week we will be looking at the NZDUSD with price falling below 0.67367, with a flag forming, we will also be looking at the AUDJPY with a fall below 77.96 area, for a rising wedge.

We are having to be extremely patient with the USDJPY with no real movement yet.

Trade of the Week

So, last week we looked at the EURAUD, we wrote. ‘So, we will look for an entry on negative price action around the 1.5890 area, moving to the 1.57 area.’

We never got the negative price action and we continued up into the 1.60 area, with some negative candles at this resistance zone.

We will be looking at the USDJPY, we have been looking at this pair for a long time with little movement, and lots of indecision but if we can break the highs of 110.16, we may see a move to 110.74.

So, we will look for a simple break and hold of 110.16 and look for a move up to 110.74/111.00.

Weekly Progress Report

We had 3 trades last week, a small look at the USDJPY and buying around the 110.00 area, we just had sideways movement and are only today looking at a possible move up, but the trade idea invalidated. We moved to a trade idea on the AUDCAD with bear flag possibility below 0.9381, unfortunately this trade did not trigger either.

Finally, we looked at the AUDUSD with a trade below 0.7085, we are in this trade with 15 pips profit and we will see what happens.

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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