Daily Outlook: Markets have been at a dead stop for the past several days as a very large chunk of traders, banks and funds are done trading for the year. In our little impromptu survey yesterday 50% of respondents said they were done trading for the year - and that is just of those still checking the analysis! We could see a bit more action today, though, as we have our last real day of news before the end of the year:
Trading Idea: The pair did not break out of its large pennant consolidation pattern yesterday and instead continued to bounce on top of its rising trend support. We stayed flat as we are only looking for a break of that rising trend support at the moment and when that happens we will target 20/20/20/20 pips for 80 pips total, keeping our SL tight to avoid the thin market whipsaws.
That is the only trade we are looking for given thin holiday volume but the more aggressive setups are also shown on the chart above. Of course PRO members will receive email alerts when S/R lines are bounced or broken.