US Dollar Price Action Into 2021: EUR/USD, GBP/USD, USD/JPY

EUR/USD WEEKLY PRICE CHART:

EURUSD Weekly Price Chart

Chart prepared by James Stanley; EUR/USD on Tradingview

GBP/USD CABLE CHAOS CONTINUES ON BREXIT POSITIVITY

For those that are looking for some volatility through the holidays, GBP/USD may have some volatility to offer. As of this writing, it appears as though a Brexit deal is set. But, for anyone that’s not knew to Brexit, there should be a hefty dose of cynicism as there’s been numerous twists and turns in the Brexit saga over the past four years.

In GBP/USD, hope springs eternal as the pair tests above the 1.3500 zone. This has been a problematic area for GBP/USD as we’ve had but a handful of daily closes above this level over the past couple of years.

GBP/USD DAILY PRICE CHART: CABLE ENCOUNTERS THE BIG FIG

GBPUSD Daily Price Chart

Chart prepared by James StanleyGBP/USD on Tradingview

For traders seeking volatility, the shorter-term chart may be more attractive. On the two-hour chart below, notice the expanding price action as mean reversion has continued to show. Should Brexit headlines continue to populate through news flow, this can keep the currency and the pair on the move.

GBP/USD TWO-HOUR PRICE CHART

GBPUSD Two Hour Price Chart

Chart prepared by James StanleyGBP/USD on Tradingview

USD/JPY: SOMETHING’S GOING TO GIVE

This is my top trade idea for next year, looking for USD/JPY to put in a deeper breakdown as price action has built in a string of support around the 103.11 Fibonacci level. The rationale here is that the bearish backdrop in USD/JPY could work with both risk-on and off themes; and without Shinzo Abe at the helm and with the BoJ still very stretched on the monetary front – how much room does the BoJ have to soften or weaken the Yen? I don’t anticipate that the BoJ will be able to keep up with the Fed next year, and that speaks to the short-side of the pair. To get my top trade idea for next year, the link below can set that up:

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