Trading Video: Short Term Euro and Yen Setups the Order for Next Week
• Tepid liquidity this past week curbed trade opportunities and another lull is expected on New Year's Day
• Medium and long-term trade setups are unlikely to progress this week, but short-term options can do well
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There are more than a few great technical and fundamental setups tempting FX traders. Yet, many of these high-profile opportunities call for dramatic breaks, reversals or trend upgrades which requires deep market liquidity. Similar to this past week's Christmas drain, the New Year's holiday in the week ahead will create another whirlpool. As the big setups gestate, we should turn our focus to the many short-term setups that have formed in the market. Many of the majors and crosses present the proper technical patterns to trigger breakouts, but certain pairs offer different circumstances. With a Greek Parliament election on Monday; EURUSD, EURGBP and EURJPY, are fundamentally loaded. Conversely, pairs like GBPJPY, GBPNZD and GBPAUD are naturally more volatile. We discuss next week's trading landscape in the weekend Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.