Top Trade Ideas - December 30th

This wraps up the last week of 2024 and the beginning days of 2025.

Last week was low on the liquidity front, and tech saw some selling to end the week. Maybe Santa is a short seller. Who knows?

Next week will again be light. The real action will start next Monday. Most markets are closed on Tuesday, or they are trading on shortened hours. Wednesday is off, and then business as usual for a majority of markets on Thursday. The only economic event to note is IJC on Thursday.

One reminder from the team (an extract from our ‘25 for 25’ article: Pay attention to 2025 predictions, but don’t take them as gospel… No one can predict the future.

No need for a Week Ahead rundown of events. Let’s get into the few ideas the team has this week.

FX

The data calendar is light this week, which shouldn’t surprise many. Price action will likely follow the trend with which we left off last week. One area where this can be advantageous to capitalise on will be USD/JPY.

The pair appears to be forming a new trend channel in the bid to have another test in the coming weeks of 160-162. With the close from Friday at 157.80, there’s enough room here to bank some pips before things could get choppy above 160.00.

US ISM Manufacturing data on Friday is the only major risk event to watch out for here.

TRADE IDEA - TREND IS YOUR FRIEND ON USD/JPY

Entry: 157.80

Take Profit: 159.90

Stop Loss: 156.90

The EURO managed to get a bit of a relief rally in the middle of December, with another bid over the holiday week, meaning that EUR/CHF is on the cusp of breaking out of the descending trend for the past couple of months.