Fundamental Analysis Question

Beginner Questions
#1

Greetings,
I feel so new and a bit embarrassed asking questions, but I really want to know what is causing something I’ve noted on EUR/USD charts lately. There are long periods of nearly horizontal ranging and then BAM!, there will be a price spike. The example I’ve included is a 4h chart, but it happens on the 15m chart as well. I’ve noted that the spikes are usually also reflected in the GBP/USD and USD/JPY charts right around the same time frame.

Can someone explain what is occurring here? Is it market sentiment? Is it some event that happens periodically that I just haven’t figured out yet?

Thanks much,
Durran

Chart.jpg700×228 47.6 KB

#2

Events like a Central bank interest announcement can spike price, if the pair you are looking at is in a nice uptrend then those periods of sideways or slightly down movements is your place to go long and take profit after the next spike higher.

Good luck

#3

In all of those pairs you have mentioned USD is included which means a news from US, or connected to US was released. When some big movement happen than it will be more visible on small time frames than on the bigger.

#4

OK, That makes sense. So could it be said that overall volatility of the market is rather low right now? This is a trend that I’ve been seeing over the last month or so.