EURUSD trades in the most narrow week trading range this year.
131 pips from low to high
The EURUSD is in the midst of a 131 pip trading range for the week.
How does that stack up relative to other weeks?
- It is the most narrow trading range for the year. The prior low was 149 pips
- It is the most narrow 5 days since Christmas week.
- There were 11 periods where the range was below 131 pips in 2017
With 11 week periods below 131 in 2017 (see green numbered circles in the chart above), the range this week is not an anomaly, but it is on the low end of the extremes.
What is an anomaly is that this week we had the US employment numbers, trade war fears, stocks whipped around in volatile trading, yields were also on the move. The market is non-trending still.
Remember from last weekend’s post, the range for the month was only 238 pips if you took out the 1st trading day of the month. The low was 1.22387, if you take out the low from March 1.
The low this week moved below that level (the low reached 1.22139). However, currently we are back above that level at 1.2268. The market remains in a 3-month range.
What next?
Looking at the downside going forward, if the selling restarts, the key level on downside remains the 3 month lows and the rising 100 day MA. Those levels come in at the 1.2153-64 area.
On the topside this week, the pair stalled ahead of the 50% at 1.2354. The high for the week reached 1.2345 and rotated lower.
That line remains a key bias level for trading going forward. A move above will be more bullish, while staying below, will be more bearish.
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