Hi friends! I’ve finally got my computer up and running again. Yay!
So, I just wanted to give you guys a quick rundown on what’s been happening in the market today. After a week of a significant amount of movement by most of the currency pairs, the market has consolidated the past 2 days. Let us take the example of GBP/USD:
If you look at the chart, you may think see that there was movement and the opportunity to make some money if you traded this, but overall the pattern is erratic. Four hours down, two hours up then some consolidation, 2 hours down again. Making trades such as these are very risky and if we decide to get into one, we must remain vigilant due to the fact that it may change direction at any given moment. There are always opportunities to make money in FX but we must know when to take or pass on a trade. When the market is in consolidation mode and there are no solid short term trends in place, it is so easy for your investment to disappear before your very eyes if you are not careful. Remember that we must see what is on the charts and not what we want to see and always keep our emotions in check while trading.
There hasn’t been any really big news out this week so far to drive the markets but as I always say, we must keep on top of our economic data. Coming up tomorrow, we need to look out for these important newcasts:
CAD: Housing starts
USD: FOMC Meeting Minutes
AUD: Unemployment Rate
We never know how much impact these data may have on the market. At times it can be quite dramatic, at other times, it hardly leaves an impact. Always be prepared for the unexpected.