Holiday Volumes Evident In Today’s Markets
Shain Vernier • 1 min read
Today is the President’s Day holiday in the United States. Wall Street is closed for business, with action on the futures and forex markets being best described as “limited.” If you are trading the U.S. session today, it is a good idea to reduce leverage and proceed with caution. Choppy price action, slippage, and wide spreads are a few items that may become prevalent as the day progresses.
The weekend news cycle brought a couple of headlines that haven’t played too big of a role in today’s trade. Last Friday evening, President Trump signed the Congressional budget compromise, averting another U.S. government shutdown. In addition, news out of the U.K. suggests that there is more Brexit chaos on the horizon. Both issues have been received relatively well thus far and may have a greater impact on tomorrow’s open.
Holiday Trading: March USD Index Futures
Traded volumes have been modest across the futures markets. However, a bearish move in the March USD Index has developed even though participation is light. At press time, it appears that the losing streak will stretch to three sessions for the March USD Index.
There is one support level that is particularly interesting in this market:
- Support(1): 38% Current Wave Retracement, 96.330
Bottom Line: Until elected, I will have buy orders ready to go from 96.345 in the March USD Index. With an initial stop at 96.245, this trade produces 20 ticks on a 1:1 risk vs reward management plan.
Remember, the U.S. futures markets feature an early close this afternoon. If you are holding open short-term positions, it will be necessary to liquidate ahead of the 1:00 PM EST halt.