Into The U.S. Early Close: Majors In Focus
Shain Vernier • 2 min read
Holiday markets are typically tight, with many liquidity providers electing to take the day off and put their feet up. Aside from the run to gold amid the U.S./North Korea escalation, today has been about par for the course. Let’s take a look at the action of a few majors and where we are likely to go from here.
It’s A Tight One, But That Will Change!
The U.S. session has seen the majors relatively muted. Intraday trend traders can get beat up in these markets as price action on the short time frames is routinely choppy. However, there is money to be made in “dead” markets given the appropriate strategy.
For quick reference, here are several of the daily ranges thus far:
EUR/USD 49 pips
GBP/USD 53 pips
NZD/USD 41 pips
USD/CAD 50 pips
AUD/USD 30 pips
We have seen some considerable action in the Swissie, posting a 66 pip range amid the U.S./Korea tensions. Aside from the USD/JPY and NZD/USD, all majors are trading comfortably within last Friday’s range.
Overview: As we move forward into the trading week, we will see these ranges open up with some directional movement. The slow trade of today’s U.S. session will be replaced by a more fluid market dynamic, facilitating opportunity.
There is the possibility of immediate and radical price action in response to any statements out of the U.S. government regarding North Korea. It is crucial to stay aware of breaking news items regarding this situation.
A huge part of trading is staying patient until the time is right. Check back with FX Leaders for guidance on when and how to engage these markets.