US Dollar Bulls Still Strong

The Greenback traded higher on Monday as the US Dollar Index came close to retesting the 14 year high of 103.56 on December 15^th. This is as expected after the FOMC raised interest rates last Wednesday and with the expectation of additional rate hikes in 2017 and the fiscal expansion policies planned by United States President-elect Donald Trump.

Again it appears that the possibly of parity on the EURUSD as the Euro resumed its slow but steady decline against the Greenback.

Forex Holiday Season

We do not expect to see any major continuations of current moves or sharp reversals as we begin the final two weeks of December. This two-week holiday period is known for thin liquidity and lackluster market conditions.

Forex traders may consider closing trades with smaller profits considering that the Forex market engines are running on low and the range is very tight.

At ForexSignal.com, we will be continuing to provide Forex signals to our clients worldwide but we will consider taking profit sooner to bank gains rather than waiting for the market to sustain a move toward a larger take/profit target.