Trading Video: EURUSD and GBPUSD Trade Setups May Need to Wait
• Expectations for a liquidity drain into the end of the week are changing market conditions
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
Short-term ranges are more appropriate trade opportunities than major breakouts and trend development into the end of the week. Past the half-way point of the week, we have seen the risk aversion momentum from last week stall, most of the major event risk go by and Friday's market holiday liquidity drain move another day closer. Short-term setups with clear technical levels tend to outperform in these circumstances. As for the growing medium-term opportunities in pairs like EURUSD and GBPUSD, we need to prepare for the tech/fundamentals/market conditions stars to align. We discuss both immediate options and bigger setups a little further out in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.