Gold & Oil - Technical Levels

Tight Ranges Across The Forex Majors

Posted Wednesday, July 17, 2019 by
Shain Vernier • 1 min read

The forex has been quiet throughout the Wednesday U.S. session. Trading ranges are tight across the board, with the biggest movers being the USD/CAD and GBP/USD. Other than those two pairs, muted price action has defined the forex trading day.

However, that may be soon to change. At 2:00 PM EST, the FED is due to release its Beige Book report on the U.S. economy. It is no secret that the FED’s policy is now dovish amid growing uncertainty and the potential for late-year economic strife. Nonetheless, today’s Beige Book may bring a bit more clarity to the situation. If there are any headline-grabbing surprises, the forex majors could experience a rapid increase in participation.

A Quiet Day On The Forex

Sometimes, the markets are simply quiet. This is exactly what we have seen today ― limited volatility and range bound action for a majority of asset classes.

USD/CHF, Daily Chart forex
USD/CHF, Daily Chart

The tight action is evidenced by the USD/CHF daily chart above. Rates are in a noncommittal technical area and the session range is a modest 40 pips. Here are two support levels to watch for the remainder of the day:

  • Support(1): Daily SMA, .9877
  • Support(2): Bollinger MP, .9864

Bottom Line: In the event the USD/CHF sells off toward today’s forex close, I will be scalping the .9850 psyche level to the long. Buys from .9854 have a good chance of producing a tidy 4-6 pip profit using a very snug 1:1 risk vs reward ratio. 

Slow markets can be a challenge to trade ― the key is to stay patient and keep assumed risks minimal.

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