Currency Trading Review – 2014

Currency Trading Review – 2014
December 28, 2014

The end of year is here, and it’s a great time to look back and review what drove markets in 2014. This little action and what to look for into early 2015 and further.
 

:

 
The biggest mover on the dashboard is the US Dollar as it is making important breaks against majors like USDJPY, EURUSD, USDCAD, USDCHF, GBPUSD, etc.

On the EURUSD pair, if you look at the previous weekly close we had last Friday, and you draw a trendline on the weekly chart from the 1.18 something lows to the 1.20 something lows, you will see that the trend line it is broken right here, right now, with this last weekly close. Meaning last Friday, after Christmas.

Such a break bears a lot of consequences as, looking at the same time frame, one can conclude that a triangle that was acting as a reversal pattern just broke the b-d trend line and the outcome there is known for even the novice trader.

Moving onto other pairs, the view is not that different.

The USDCAD just broke this year out of a monthly contracting triangle and now that the b-d trend line is broken, we should see more squeeze to come into and above the 1.18 level, with the pair flirting with the 1.20 level sooner rather than later.

The USDCHF is just below parity, trading below 0.99 but for a pair that traveled so much and with negative interest rates SNB (Swiss National Bank) imposed, it is not out of the question to look for higher values for the pair and, of course, moves above parity to come.

And just like that, 2014 proved to be an interesting year, as we’re heading into 2015 with quite a few levels to watch for:

1.20 in EURUSD;
1.20 in EURCHF;
1.20 in USDCAD;
1.00 in USDCHF;
1.20 in USDJPY

Looking at the quotes above, one cannot ignore the coincidence and say this is just random.

Is there something in store for 2015 that we don’t already know?

I would say no. We just need to be objective. And being objective means to look at the other side of the Atlantic Ocean, as the US economy is growing bigger and bigger while others, while not necessarily stagnating, are imposing zero or, more fashionable, negative interest rates.

We encourage traders to open accounts with multiple brokers to ensure that you get the best rates when trading. Open an account with any of our approved brokers. Don’t forget that you can also trade currencies with Binary Options.

Sammy

Sammy

Sammy is our forex expert, with over 20 years experience in the financial sector, she will be keeping you up to date with the ups and downs of currencies around the world


Related Articles

Bullish USD Ahead of NFP

  Forward Guidance was introduced in order for market participants to have an idea about what central banks are going

UBS Suspended From Sponsoring Hong Kong Offerings

  The Securities and Futures Commission (SFC) of Hong Kong has suspended UBS Group AG (NYSE: UBS) from sponsoring Hong

Pound Rallies As Negotiators Move Closer To Brexit Deal

  The sterling gained against the greenback and recorded a three and a half month high against the euro yesterday