Those of you who are relatively new to the forex market will need to pay attention to the fact that the FX market becomes a lot less liquid and hence increasingly more volatile during December. Traditionally, after the US Thanksgiving holiday, the bigger speculative players become less active as indeed do many corporates and the reduced turnover leads to sharper moves in either direction. I would not expect the market to return to complete normality until around the 10th of January.
Technical levels become less reliable during this period and my advice is to reduce position size and adjust your s/l and t/p targets accordingly.
