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Good day forex trading koalas.
In the previous review, Masoud mentioned that due to the lack of trading volume, unexpected currency movements may happen and it will be a challenge to analyze the markets.
Looking at the EUR/USD chart above, we can see the low volume market conditions being played out on the chart. The EURUSD ranges excessively as the stability from having high liquidity is missing.
The US Unemployment Claims came out much better than expected. Clocking in below 400k, traders are optimistic that the employment market may be stabilizing. A stable employment market will increase consumer spending and hence lead to a growing economy.
Moments ago the US Pending Home Sales came out better than expected and this will probably add on to the market’s positivity toward the US. Compared to the problems plaguing the Euro Zone, this is probably more welcoming.
Having said so, i always mention that the US faces a big debt and hence be careful of complications arising from it.
As we move into New Year’s Eve and the New Year, expect even lower liquidity. Do plan your trades well and consider all risks. Over trading is a forex mistake.
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