4 days of absence in volatility have frightened many traders and causing those who have low psychology edge and trading lower time frame to exit their Buy and Sell Positions.
Sellers and Buyers who took positions earlier, voluntarily exit with loss or little profit because afraid of inaction in the marketplace (EUR/USD).
What is the absence of Liquidity? Please refer to the attached photo
I’m still holding to my Buy position even absence of Liquidity
I suspect a lot of money has been taken away from EUR/USD and sent to GBP/USD and GBP/JPY. So perhaps, when the pound calms down, things will return to normal.
That said, EUR/USD has limited price action, at least when looked at from the daily point of view and is so prone to reversals I don’t know why private retail traders would bother with it.
I’m still learning about jumping in too early, and waiting for trend confirmation.
On the W1 it’s been in a downward channel for several weeks. I expected a bullish breakout, but I got faked out on D1. Then, it went bearish on D1 and gave a nice red candle.
Then price went back up again. All the indecisive candles told me to close my EUR/USD position and wait for trend confirmation.
That’s what my trader psychology told me to do. I felt it was logical.
My gut instinct told me last Thursday to stay out until after the weekend, but I wanted to catch some early pips and add to my position later…
But I got faked out twice! So, now I’m waiting.
But I kept my position small, and didn’t want to hold on to any losing trades if I’m not confident in what the market is doing.
I learned on this forum that holding onto a losing position and hoping price turns in your favor, is not a strategy.
EUUR/USD will always be the place to get trapped. It reverses every 30 seconds. On the longer-term front I was looking at the % moves in the major 28 pairs over periods of time until the present and the EUR/USD scores very badly out of 28 over most time-scales under a year -
% change in last week - 14th out of 28
2 weeks - 21st
1 month - 23rd
2 mths - 28th!!!
3 mths - 18th
All of which implies lack of sustained trends and/or frequent reversals. There are better pairs to trade but few worse.
Right now, the strongest currencies are GBP, then AUD (and obviously NZD, its little brother). The weakest are JPY and USD, and they’ve been swapping the bottom place between them for many weeks.
OK., some traders like to trade pairs which range for ever and ever, but that’s a niche market and there have been juicy pickings from GB/JPY, GBP/USD, AUD/USD etc.
I think it will carry on ranging for several weeks. maybe then it will drift upwards but only weakly and only to about 1.24. Then it will range again for a couple of months and then it might creep a bit hgher or slump a bit lower, but really slowly.
For sure this is one complex kid. People keep saying it reverses every 3 bars because so many big players are forced to watch it and to hold both these currencies so they move in to buy or sell at the slightest movement.
People say its a risk-on pair…
I’d call it stress-on…
