A Look Around the Market … with 16 Pips in the Pocket
Skerdian Meta • 2 min read
Quiet and irrational is what we can call this sort of market. We´ve mentioned it many times that it was going to be impossible to interpret the forex market during this period as forex traders take off and that´s how it´s behaving. It´s being very quiet, but at the same time, very unpredictable.
The price has been all over the place, albeit in tight ranges. Looking at the forex market from a USD angle, you come to the conclusion that there´s no overall uptrend or downtrend. The Buck has been gaining against the commodity block and the GBP while losing ground against the Euro, the Yen, and the CHF.
Actually, now that I think again, there seems to be a direction in this year-end cash flow. Looks like the money is flowing out of risk currencies and towards the safe haven currencies. Yep, that seems right because that´s what is happening now and it makes sense too. Forex traders are parking their cash in safe haven currencies before the Christmas break just in case the world falls apart which would send risk currencies to the floor.
Not really sure how long this jog on safe heaven land might continue, but if you are on one of these forex trades, don´t get too greedy. We mentioned yesterday that these are only small moves so get what you can and get out. You won´t make your fortune during these last days of the year.
The 100 smooth moving average (100 SMA) was high enough for our EUR/CHF signal
Following this logic, we closed our EUR/CHF signal a while ago. We opened that forex signal when this pair was close to 1.07 a couple of days ago after we had opened another one about 15 pips higher. We got 16 pips from that forex signal which is more than enough nowadays, so we´re making progress towards our Christmas bonus.