Slow Forex Action Going Into Mid-Week Trade
Shain Vernier • 1 min read
Today’s forex action has been relatively quiet, featuring moderate trading ranges across the majors. The largest movers have been the GBP/USD and the EUR/USD, which still displayed muted order flow. At least for the time being, there isn’t a whole lot going on in the world’s currency markets.
Of course, the great thing about forex trading is that something is always about to happen. The next 24 hours should bring a bit more activity in the wake of these key events:
- API/EIA Crude Oil Stocks Reports
- Japan’s Current Account Balance (May)
- Swiss Unemployment Rate (MoM, June)
- European Commission Economic Growth Forecast
All in all, summertime trading can be a challenge. Market liquidity is often limited as many traders and investors are out of the office. However, given the news cycle of the past several months, things can change quickly. The state of U.S./China trade, coronavirus developments, and politics are capable of instantly shifting the dynamic. While things may seem dull, it’s always a good idea to monitor your FX Leaders news feed.
Slow Forex Action, USD/JPY Rejects Daily SMA
In a Live Market Update from Monday, I broke down a scalping opportunity in the USD/JPY. The play worked to perfection, producing a pain-free 12-15 pip profit. Although scalping doesn’t produce huge winners, it isn’t a bad strategy for rotational markets.
Overview: For the time being, the USD/JPY remains in a noncommittal technical area. However, we may see a move in the near future. During the upcoming U.S. forex overnight session, Japan’s Trade Balance figures for May are due to be released. If there is a major surprise in the data, breakouts either above the Bollinger MP (107.51) or below the Daily SMA (107.26) are distinct possibilities.