One of the most dangerous mistakes a trader can make is “catching a falling knife.” Or when prices continue to drop to look for places to be long.
The GBPUSD looks to be in a long term consolidation that may carry us through December as the UK parliament will vote on the BREXIT deal ahead of the Christmas holiday.
The CADJPY has been range bound for about the last 30+ trading days, but broke lower out of the range today.
The USDSEK is not a currency we cover at Forex Analytix, or a currency pair I trade much. However, it does represent a pair I personally follow for a specific reason. Sometimes, the pair can be a leading indicator on what we may see in the broad USD Index.
Traders have witnessed the tremendous selling pressure GBPNZD has suffered from, following all the BREXIT headlines and negotiations over the last few weeks.
The NZDUSD has had a relentless bounce higher the last couple weeks and we are now testing the underside of the broken multiyear trend line and also the 38.2% Fibonacci retracement of the 2018 low to high range.
The AUDNZD is testing the lower end of the triangle that has been forming since 2015, but you could really argue since 2013.
Crude oil has fallen quite dramatically in the last few weeks and over 28% from the 2018 highs set in October.
The EURUSD has broken the key 1.1300 support and is at fresh yearly lows. We have a long term head and shoulder’s pattern, which if completed, could take the pair back towards parity.