Forex trade has been really slow this week, with the majors pairs failing at the first support or resistance that came their way. The only exception is the pound, which has moved approximately 300 pips this week.
However, when compared to its historical average trading ranges (ATR), these are small movements. The slowest pair this week has been Usd/Cad, which, over the last three days of trading, has moved less than 100 pips - the equivalent of one healthy trading session on an average day.
Small trading ranges and declining ATRs usually appear around indecision points, where the market tests the strength of the current trend. More often than not, the market forms near-term swing points in these areas, something that might happen over the upcoming period. The dollar index looks slightly overbought, while the major currencies are unable to push any lower, despite the renewed pressure.
This could led to volatile movement that expends intra-day energy without actually getting anywhere in the short term, with the cad and the aussie most exposed to Usd strength is the S/P fails to break and hold 1145 and crude oil cannot get through $82.50.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.
The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.
About the Author
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.
The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.
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