Is forex market stability coming back?

Has anyone else noticed a huge difference in how candles/prices are looking this week?.. I took 2 trades audchf 10pips at .9058 and usdchf 13pips at .6458 both were trend breakouts and I waited for both to break above next area of support resistance. I have seen several great setups like these this week and for me this have not been the case since the end of September

Just in time for the US Election to throw it all out again and then just as it settles the holidays start.

Meaning you think it’ll be choppy again after the election?

The market is consolidating before the elections in the US, once those happen we can probably expect a lot of volatility.

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I think by next year the fore market will be stable but it will not be as stable yet because there is still a lot that has to happen for that to eb possible. If the cases ris then ti amy become even more stable that it already is. The point is no one is sure of the time when the market will be stable. What we can do right now is wait and see how things turn out.

Agreed. I also don’t like trading once the holidays start for the Christmas period either as the volume drops out and some moves can be almost random and hard. I will be approaching this quarter with more caution than normal for sure.

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I’ll take a certain amount of volatility without constant choppiness that makes candles very ugly and hard to look at


Yes but last week was solid for me first solid well in over a month …this week so far its hard to tell I have a few alerts set but it’s still early

That too. Also, most of the summer - the market is always odd and too slugging during the summer.

Ive been waiting for the breakout for months now. It seems its one event into another. Definitely need to take caution with the months ahead

This is a really great question. I think it depends on the cycle and where banks want to take price. For example, the Eur/USD has been in this awful triangle pattern for the past month. A breakout either way would be nice.

Since you are trading AUD/CHF, you can get some pretty nice moves in one direction due to high volatility. My philosophy is, because it’s FOREX, always be looking for the range. That’s proably where you will be stuck 80% of the time. :upside_down_face:

The market is currently volatile. The price may take an impulsive form after the US election and Christmas.


The banks in US are not lending

Instead they are buying US 30 year bonds - knowing that everyone will be lining up to buy them once the markets break - because of the no lending they themselves have created

They are going to be making a ton of money selling their treasury bonds.

And to buy those bonds foreign players need to buy dollars - lots of em

This is the macro play but it’s been a while in coming.

So it’s going to be risk off for a while - and it’s still not too late for an October stock market crash.

Now the VIX is soaring meaning markets are going to liven up if they have not already

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Totally anecdotal, but I have observed greater market volatility and movement throughout wider time ranges during periods of political uncertainty. That may be the most “duh” statement ever, right? When I backtest my EAs, during the 2008+ “great recession” my effective trading ranges run throughout most of the major US hours. A few years later, after a bunch of interest rate related stimulus, when equity markets and unemployment start to recover, effective trading windows shorten and get more conservative in my view. More likely to get movement that matters towards the end of the U.S. session. 2020 throws the whole thing out of whack (go figure), and I could totally see an emerging scenario where global markets are starting to price-in the likelihood of a Biden presidency, and a a return to normalcy over time. Is that today? Maybe not, but I expect USD to start trading more conservatively and recognizably over the next year.

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With elections this week, I don’t think so!

I do not see the market becoming stable anytime soon. First US elections kept the market volatile. Then with winters approaching, there will be a rise in Coronavirus cases which will further have an effect on the market.

I am presently trading in only two pairs, and keeping a track of any major news. Took 20 pips of profit which is not bad considering the present situation.