Forex News: Trading Volume Remains Low, U.S. Consumer Confidence Expected to Trigger Mild Momentum
Forex News: Price action resumed yesterday but no substantial developments took place, as it was anticipated due to the low trading volumes.
The pair moved higher and reached the resistance at 1.1875 but the level couldn’t be broken on several attempts. This doesn’t necessarily mean that 1.1875 is going to hold, because the pair’s direction will remain uncertain until the markets will gather a bit more volume. We expect choppy trading above and below 1.1875 but we cannot rule out a sudden spike generated by the low trading volume.
The U.S. Consumer Confidence survey will come out today at 3:00 pm GMT, showing the opinions of about 5,000 households about the overall economic situation. Usually a higher number shows optimism and strengthens the US Dollar but given the current situation of thin trading volumes, the impact is more difficult to anticipate; today’s forecast is 128.2.
As it was expected, price action remained very slow and choppy due to the lack of volume and the pair traded in a very narrow range.
Price is moving very close to the 50 period Exponential Moving Average which is flat, so an accurate technical prediction is difficult to make. We expect irregular price action and low trading volumes until the first week of January 2018 but beware of potential spikes.
Just like the rest of the week, today is a slow day for the Pound because no major economic data will be released.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.