Trust everybody had very nice Christmas break and enjoyed time with friends and family. Currencies seem to be of similar frame of mind, not in a hurry to return to “normalcy”. No surprise, considering that December 26 is still holiday in Europe. This leaves only one Friday, which many people probably decided to take off. Outside of unpredictable, geopolitical events, it is difficult to imagine scenario with potential to make trading interesting.
To start the week, I discussed a possible trade in the EUR-CAD. The set up was simple, wanted to see the price form a minor low in early trading, which happened soon after opening. That created a sell level, with order at 1.4525. Initially, this trade looked promising, but eventually volatility evaporated, with markets getting sleepy before Christmas. There was no reason to carry this position on the books past holidays, so I closed for marginal gain before trading was halted.
I do not see a reason for extensive trading in the remaining few days of 2013. Currencies are moving erratically, volume is low. Since it is Friday, I will attempt my customary short-term breakout trades at the start of the London session. Outside of that, will wait for the weekend to do more analysis and decide whether it is worthwhile to do anything next week.
Mike K.