130 pips for the week. But that can be a good for next week. 1.1735
The EURUSD made new lows for the week today and in doing so, they extended the range for the week. The range for the week is now 130 pips. Big deal. Putting that number in perspective, it is the most narrow trading range of the year (it is 1 pip lower than the April 1 range of 131 pips). This week did include an ECB rate decision, a trade agreement between the EU and the US that may stop the tariffs, and a 4.1% US GDP growth. figure.
Now there still is time to extend the range, but London/European traders are gone. So it will take some work and perhaps a catalyst too.
That 130 pips is the bad news for traders who like movement.
The good news is non-trending transitions to trending.
Markets/traders don’t like to sit at one place for too long. They get antsy. So they look for reasons to move the price away. When they do, there is a chance that you get a bigger move (non trend to trend).
Looking at the dally chart of the EURUSD below, the pair for July honestly, is stuck between a downward sloping topside trend line that cuts across at 1.1735 and a lower trend line at 1.1590. Each day, those trend lines, get closer and closer together. That dynamic does not stick. There will be a break.
For trader’s we start to anticipate a break and momentum run.
As a result, for next week, go into the week with the mindset that this week’s range stunk, but next week has the potential to be better. If you anticipate you have a better chance to capitalize on the feeling. If you are not expecting something to happen, you will simply be surprised and watch – or maybe sell rallies or buy dips instead of going with the break.
Also understand that the ups and downs, that have gone on for a while, will end one day and that trend lines are starting to get closer and closer together on the daily chart. They give us ALL a visual clue.
Those trend lines could be the spark that ignites a move – higher or lower.
Be on the lookout. The range stunk this week, but there will be brighter day’s ahead.