Home / Market Analysis / December 11: The Best Forex Levels And Setups For The New Trading Week

December 11: The Best Forex Levels And Setups For The New Trading Week

It’s harder to find good reversal and transitioning trades these days, but it’s a normal market cycle every system goes through and the importance of patience is obvious at the moment. Every system goes through different stages and you have to maximize profits when it performs best and sit on your hands tightly when there are no trades.

At the same time, I have expanded my playbook and I have added 2 new setups to my repertoire which I will be sharing shortly. The new setups are also transition setups but they cover different types of reversals which comes in handy to expand your playbook.

I have also started to switch back to the 1H timeframe these past weeks to get into short-term reversals which works quite well.

Nevertheless, I found  a good selection of markets, levels and potential setups for the next few days that I want to share now.



The AUD/CAD is coming from a major short reversal on the left daily chart and it has been falling sharply. It is now approaching a major support area at the 0.98 level. So far, price is still falling strongly and it’s not the time to pick a bottom but it’s an interesting area where a bounce could be possible. Below that the 0.96 is also interesting although it’s quite a bit away.





The Yen pairs have seen high momentum moves for the past weeks and many traders have tried to call tops and bottoms. The CAD/JPY is no dipping into the resistance zone starting at 88.0 which could make a reversal likely.

Keep in mind that as long as the equities keep rallying and Gold falling, the Yen will also most likely keep falling and, thus, the CAD/JPY will keep rallying. However, once this market phase is over, we will most likely see major reversal opportunities. Up until that point, you need to sit on your hands 😉



Dollar Index

The Dollar Index is back at the highs and after a short dip, the rally continued as the 100.00 level held. It does certainly feel like a high volatility and high uncertainty market top but we have to take it as it comes. With last week;s dip there were some great short-term reversals on the 1H on some of the USD pairs.

If we can find new resistance at 102, we could see a few short-term reversals on the other USD related pairs, though.




GBP/CHF has a very interesting pattern at the moment and on the left 4H chart we can definitely see a change in trend structure where price is now putting in lower highs. The transition break point is the trendline and the 127 support/resistance area.

There are actually a few interesting setups on other GBP related pairs that do look similar.




I said it already and as long as US equities keep rallying, Gold will keep plunging. There is very little safe haven demand and although it feels like people are a little bit too optimistic right now, you can’t fight such euphoria. Gold is headed into the 1120 level which is still quite a bit away but we broke the 1200 support level and have stayed below it. When we look left, we can see that there is no real support/resistance area until 1120 which could keep price from falling. It all depends on the macros these days.




Another Yen related pair with a strong trending structure and it’s approaching a key level below 83.00. So far, we still see a lot of bullishness in this pair but it’s reaching an interesting area which makes this pair worth having on your watchlist.




The USDCAD is in a major overextended trend without any real pullbacks so far. However, this is not a good enough reason to just step infront of this moving train with buy orders. We have to wait patiently until we see clear signs that the market is reversing.

1.31 marks the start of an interesting support area which stretches all the way to 1.30. Again, we need to wait out the trend first.




And the last Yen related pair for this week’s watchlist. It is also approaching an important key price area at 116 and it’s an untested resistance area. Again, the plan is the same: we don’t just sell but we wait until we can see that price is losing the bullish momentum and is actually picking up selling pressure. Until then, we just wait patiently.



Keep in mind that on Wednesday we finally get the FED interest rate decision and anything other than a rate hike would be a total surprise. The event should be priced in by now so it’s not so much about the actual rate hike itself, but what the FED has to say about the future rate hike projections and the plan for 2017.


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