Today, market pays all attention in the risk event : FOMC Minutes: This is the most important event this week and we all expect FED will use this meeting to prepare for a meaningful move next months.
In my opinon, I don't expect a significant change in this event, and FED will continue hold a cautious attitude and refuse to talk about any idea regarding rate.
If FOMC Minutes is a non-event , how to trade ?
What I actually fear is :RISK AVERSION.
Lacking of data, traders usually choose most safe solution: That is SELL Dollar.
RECENT WEEKS, I SEE A STRONG DROP OF VOLUME : TRADERS WATCH MARKET AND DON'T ENGAGE IN IT.
Cause of low volume, volatility is low as a result, only volume comes back, volatility comes back : significant move happens as a result.
THERE IS A GOOD REASON WHY VOLUME AND VOLATILITY IS LOW:
- THIS MONTH IS AUGUST, AND TRADERS ALSO INVESTORS TAKE SUMMER VACATION.
In short, we should wait and keep patience.
- Technical Analysis
We should have a wide view:
Look at on the chart , a big wedge patten I show on the chart.
I think EURUSD will react according this pattern : Any break above or below the wedge will trigger for a strong move.
In my opinon, I don't expect a significant change in this event, and FED will continue hold a cautious attitude and refuse to talk about any idea regarding rate.
If FOMC Minutes is a non-event , how to trade ?
What I actually fear is :RISK AVERSION.
Lacking of data, traders usually choose most safe solution: That is SELL Dollar.
RECENT WEEKS, I SEE A STRONG DROP OF VOLUME : TRADERS WATCH MARKET AND DON'T ENGAGE IN IT.
Cause of low volume, volatility is low as a result, only volume comes back, volatility comes back : significant move happens as a result.
THERE IS A GOOD REASON WHY VOLUME AND VOLATILITY IS LOW:
- THIS MONTH IS AUGUST, AND TRADERS ALSO INVESTORS TAKE SUMMER VACATION.
In short, we should wait and keep patience.
- Technical Analysis
We should have a wide view:
Look at on the chart , a big wedge patten I show on the chart.
I think EURUSD will react according this pattern : Any break above or below the wedge will trigger for a strong move.