Today’s market action was influenced by economic data released from Europe earlier in the trading day followed by data from the US later on. In both cases extreme volatility was seen and experienced. If we look at the EUR/USD as an example, we see that the pair hit the highs for the day 3 times and the low of the day 3 times, this is a trading range of over 100 points.
Regardless of the economic data details released today, profitable trading would likely have required extremely good timing on your entries and exits, or sticking to your plan, and not getting shaken out of the market by volatility. Clearly, long term traders are not influenced by intraday volatility as much as short term traders, and today was probably a better day for the former rather than the latter.
More economic data is scheduled for release this week, including from the FOMC’s most recent meeting minutes, existing home sales and unemployment claims from the US, and claimant count change from the UK and a Bank of Japan press conference on Friday. All the economic data releases are expected to have an immediate temporary impact on market prices. Unless there is a significant change in the released data, the news effect will fade as the day goes on, leaving the prices in the hands of global supply and demand.
The charts and examples found on this website are educational examples and are not intended to be representations of profits or losses that can be achieved through forex trading. When reviewing any such examples, please keep in mind that past results are not necessarily indicative of future results.