Trader Alert This is Not a Normal Trading Week

[Trader Alert] This is Not a Normal Trading Week

The upcoming week is filled with key events highlighted by central bank  monetary policy decisions in the U.S., Japan and UK as well as a full economic calendar.

While this suggests plenty of volatility for trading THIS IS NOT A NORMAL WEEK..

This is the last full trading week of the year,  typically one dominated by position adjustments and book squaring rather than traders looking add to positions and take on fresh risk.

This is especially true this year as Christmas falls out on a Wednesday, with early closures on Christmas Eve (Tuesday) and many centers closed the day after (Thursday).  So, if looking to trim, adjust or close out positions the coming week is the only one where there will be full liquidity.

This was already evident to close last week when the EURUSD found support as short EUR  crosses were  unwound l, most notably vs. the JPY and GBP.

EURJPY ONE HOUR CHART December 13, 2024

EURGBP INW HOUR CHArtt December 13, 2024 .. (Outside week key reveresqal)

So, looking ahead keep this in mind as thus will not be a normal trading week. While history does not always repeat itself,  I have found the week before Christmas is typically one dominated by position adjustments/book squaring and the week after by what I call the early birds looking to establish positions in anticipation of trends in the new year.

With that said, this week should have plenty of volatility and opportunities to trade (see our Economic Data Calendar) but just keep in mind that it is not a normal one . Experienced  traders will likely play it closer to the vest and not bet on typical follow through or stand in the way of real money orders , especially with lighter than usual speculative flows as liquidity thins as the week winds on.

[Trader Alert] This is Not a Normal Trading Week

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