Many markets remain in tight ranges on the higher timeframes. Whether we look at indices or Forex pairs, the situation is often very similar.
In my own trading, I adjusted a few weeks back and I moved towards trading the lower timeframes. On the lower timeframes, the ranges from the higher timeframes become great trends.
But the current uncertainty that is looming over the whole economy is clearly impacting investor behavior and price action across all instruments.
The S&P 500, along with other stock indices, broke out last week but as of writing this analysis, the breakout turned into a fakeout and the price is back within the range.
The EUR/USD has been stuck in its Corona-range for the past 4 weeks, trading between 1.10 and 1.08
There is absolutely no momentum on the higher timeframes and I keep cautioning our traders to stick to the lower timeframes.
The GBP/USD is showing an even more extreme range behavior as the price action is contracting into a triangle. Swings become smaller and price movements do not last.
This week is NFP week but so far, even the significant increase in US unemployment data wasn’t enough to act as a trend catalyst.