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Asian markets have moved lower, and once again set up another 24 hour period of strange price action. The markets are forced to hedge falling equities with long-dollar positions, and the major pair charts reveal the desire to liquidate those positions as soon as stocks find any glimmer of buying pressure.
We know the cure; positive equity trade. Until then, welcome to normal. We can work around it with very tight targets, and intra-day plays that get banked fairly quickly, but this is not a market to be looking to place too many pending orders.
The current 1 hour and 30 minute charts are about as far from 'normal' as we have seen in thirty years of forex trade, and reflect very well the reluctance by the global markets to accept risk.
The net result is candle formations that are imbalanced and volatile, yet remain consistently larger throughout the day than we will probably see again for a long time.
In the darkest days of the credit crisis melt-down the charts were not as severe as they are now throughout the 24 hour trading period, and yet with all of that said, the price action is unable to break new ground.
The minute-by-minute swings really are far from the norm, and will only settle down once equity markets attract increasing volume levels; low volume equates to easy reversals.
The Usd/Cad 30 min chart shows a 24 hour period, (that although reflects the recent 'norm'), is far from what this pair historically looks like. To have consistently large 30 minute candles throughout the whole session is very unusual, and something that makes, Entry, Target, and Stop analysis very hard to nail if using pending orders. This is a near-term traders market at the moment.
The 24 hour time-frame chart shows an open and closing price at the same area, and yet the pair has visited the extremes of 30 minute price movement, and moved to 30 minute extemes all day, with 40 and 50 pip wheel spinning candles.
We really do need to see volume come into equity trade, because that will allow these attempted break-out to actually move. We will update as the momentum hits at price points, or reversal areas, that look as though they can hold, and that may come after the RBA rate decision at 00:30 EDT.