The last week of December and the first New Year is usually characterised by low liquidity and short-term consolidation movements.
The same would be true if it was not for the night of January 2/3, when the accumulation of several factors resulted in a Flash Crash on USDJPY – a drop of 420p. The situation was similar on Yen crossings, in particular with AUD and NZD. These factors include: a press release about Apple’s poor results, a drop in GDP in China, the threat of war between China and Taiwan, a free day of the Tokyo Stock Exchange and all this at a time of low liquidity which is the norm in 23-1 hours. In the last two weeks we have basically only had 4 days of normal trading and only the situation on OIL.WTI seemed to me interesting enough to analyze its charts and look for trading opportunities on it.
In the first analysis – “OIL.WTI – will oil rise from the knees? on 26th December, I described the bull market that appeared on the day chart heralding the possibility of an upward correction, and this week’s strike from the Inside Bar, supported by the bullish divergence on the daily chart, strengthened my conviction that it is worth entering the longs ( BUY) as I described in the analysis:-“OIL.WTI – how much can I wait?”. So far, the growth correction is developing quite lazily, but it seems that it will last a few more sessions and the price will reach the support of the triangle, which it left on 17 December. Movements on oil were moderate, so I paid more attention to the Canadian dollar pair USDCAD, which usually reacts strongly to changes in oil prices.
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