Today’s action is typical of a holiday session, with both participation and volatility being limited. As of this writing (about 1:00 PM EST), ranges are tight across the majors. Daily Doji patterns appear to be forming in the USD/JPY, GBP/USD, USD/CAD, and USD/CHF. Until we see order flow pick up, the forex is likely to stay range-bound.

Of course, as in most things associated with active trading, things are soon to change. The forthcoming U.S. overnight and Friday pre-session hours have a few primary market drivers scheduled for release. Here is a quick look at the key events:

Region                                      Event

Japan                                        Tokyo CPI (YoY, November)

E.U.                                           CPI (YoY, November)

Canada                                    GDP (QoQ, Q3)

Inflation is going to be a buzzword going into the holiday weekend break as Japan, Germany, and the E.U. release their CPI metrics. As a result of prolonged dovish policy moves by most international central banks, each of these CPI figures is expected to rise. Ultimately, only time will tell if consensus projections prove accurate.

A Holiday Doji For The USD/CHF?

In a Live Market Update from 22 November, I outlined a short trading plan from just beneath par value for the USD/CHF. The trade has performed fairly well, producing a 13-pip positive move. Barring a short-term reversal, the sell from 0.9994 has a good shot of hitting its profit target.

Overview: Holiday trading is always a challenge given the lack of liquidity and order flow. These two elements are very likely to define the action until the coming U.S. overnight session. If you are trading, remember that now isn’t the best time to pile on the risk ― there will be better opportunities beginning Monday.