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EURUSD (Forex): It's Oh So Quiet
After every choppy move comes a price spike.
It's oh so quiet
It's oh so still
You're all alone
And so peaceful until...
Bjork, "It's Oh So Quiet"
This song keeps playing in my head as I'm watching today's action – or, rather, lack of it – in the euro-dollar exchange rate (June 4). The action has been pitiful: After falling almost 200 pips in a matter of hours yesterday (June 3), the EURUSD entered a sideways trading range that has continued for… well, almost 30 hours, as of this writing. If you trade forex, you've probably been watching it, too – and wondering what's going on:
Why hasn't the EURUSD moved? Around noon today (June 4), Jim Martens, editor of Elliott Wave International's Currency Specialty Service, offered this explanation to subscribers in one of his intraday comments:
Need a forex forecast? EWI's Currency Specialty Service gives you forecasts of the major and minor currency pairs 24 hours a day. Get instant access now.
12:11 ET/16:11 GMT [Market Insight]
It seems as though no one wants to make a commitment. I can understand, given the data due for release over the next couple days. The schedule looks like this:
Thursday, June 5, 2008
08:30 a.m. Initial Jobless Claims For May 31 Week
10:00 a.m. DJ-BTMU Business Barometer For May 17
Friday, June 6, 2008
8:30 a.m. May Nonfarm Payrolls
8:30 a.m. May Unemployment Rate
10:00 a.m. Apr Wholesale Trade
3:00 p.m. Apr Consumer Credit
Of course, you know that soon – oh, very soon – someone will try to push the EURUSD either up or down. Judging by this 30-hour-long sideways trading range, there is probably a massive build-up of short and long positions around it. Once someone with a large enough wallet decides to make a run for those stops – either above or below this trading range – watch out.
Where will the EURUSD go from here? Sign up for EWI's Currency Specialty Service now and find out. Your subscription also gets you instant free access to a free 49-minute webinar on how to trade forex with Elliott wave. The webinar, recorded live on March 25 by EWI's Senior Currency Strategist Jim Martens, covers these and other topics:
- How do I identify trade set-ups in currencies?
- How do I set protective stops using Elliott to help me manage risk?
- How do I set price targets using Elliott?
- How do I identify a wave pattern in real time forex trading on my screen?
To watch this free 49-minute webinar now, subscribe to EWI's Currency Specialty Service and click on the "Video/Education" tab once you have logged in.