Welcome Forex traders, to another daily Forex technical analysis breakdown. In today’s live trading session, we went over the current status of our forex signals from yesterday, and then applied technical analysis to find further trade setups for CADCHF, USDCHF, and XAUUSD. We concluded the session by doing a quick lesson on How To Choose Your Stop Loss.
Watch: How To Choose Your Stop Loss
As expected, the forex market started with lots of consolidation this week. Out of the 3 trades that were analyzed in yesterday’s live session, EURUSD was the only signal to move into a decent amount of profit. The other trade setups for XAUUSD and USDJPY were not activated. The global markets are awaiting tomorrow’s CPI and Rate Decision for the US Dollar, as well as the results of the UK Election this Thursday.
In today’s session, we were able to spot potential long opportunities for CADCHF and USDCHF. Both currency pairs are at a critical daily support level and we are waiting for bullish rejections on the 4HR timeframe to confirm our long bias. We want to see either see a bullish engulfing candle or a bullish hammer to confirm the buy setup. Any other candlestick would likely suggest further downside. The precious metal XAUUSD continues to consolidate in and around 1465. If we get a clear bullish breakout above this level, we can expect to buy the Gold to 1474 and then target 1484.
We are still early in the trading week, but there are not many trading days left in the calendar year. With that said, we should take pride in the number of profits we have made since April. We made these pips by staying true to our price action trading strategy, risk management protocols, and controlling our emotions. These next two days will be the last surge of volatility in the markets before the year ends. If you don’t need to be in a trade, don’t be in one. Capital preservation is key. However, this does not mean we’ll stop analyzing the markets and providing trade ideas. We have some great trade setups that are pending and will hopefully be available to enter within the next few hours. As always, be safe traders and trade responsibly!
Check Out Yesterday’s Live Session Recap: December 9th, 2019
