Today marks the observance of the Memorial Day holiday in the United States. All American equities and futures markets are closed for business. At the moment, investors are taking a much-needed break from what has been a chaotic 2020 trading year. For now, the only games in town are the forex and cryptocurrency markets.
Even though the U.S. economic calendar is bare, there are still several news stories likely to impact the next 24 hours of forex trade. First, Bank of Canada (BoC) Governor Stephen Poloz is scheduled to speak at 1:30 PM EST. Although this engagement is a minor one, periodic volatility may strike the Loonie. In addition, President Donald Trump has banned U.S. entry of travelers from COVID-19 hotspot Brazil. The announcement was made late-Sunday and places Brazil on the same list as China, the United Kingdom, and E.U.
As a general rule of thumb, holiday trading can be a challenge. Markets are thin and price action is choppy. This is certainly the case today, as U.S. liquidity providers are out of the office for Memorial Day.
Slow Memorial Day Trade Of The EUR/USD
The EUR/USD has been in heavy rotation today, trading just beneath the 1.0900 handle. Rates are well off last week’s high, which was around 1.1000. Below is a look at the weekly chart for this pair as of Friday’s close.
Here are a few levels to watch as the week unfolds:
- Resistance(1): Weekly SMA, 1.0939 (mislabeled as “Daily SMA” on chart)
- Resistance(2): Bollinger MP, 1.105
Overview: While today’s Memorial Day forex action is light, business is sure to pick up in the coming 18 hours. Institutional money is due to make a return to the office for a potentially large Tuesday session. If you’re active in the markets over the next 12 hours, be sure to have your stops down and leverage in check.
Go to the news source: Forex, Cryptos Open For Memorial Day