As expected trading in the last few days of the year have been as volatile as ever. However, to note activity for the EUR and GBP, we need to recall back to December 15th, when both the Bank of England and European Central Bank had hiked their rates up by 50 bps. Since the large dip on Monday, December 27, as our analysts suggested that there would be a pullback as the RSI has made three lower highs while price has made 3 higher highs. As suggested, there was a pullback bringing the pair as low as 0.87933.
Trading in the last week of the year is always tricky, its important to manage risk accordingly and to understand that all trading carries risk. This is an exciting set up for the new year. It will be interesting to see how banks will react.