Be prepared for 158~ pips drop on market open EURUSD

Brokers have advised to stay away from trading Euro pairs for good reason. The volatility near the market close has not been the kind you want in trading. As a result, I took a breather away from my charts until this blows over because it doesn’t make too much sense to be spotting chart setups in such a chaotic fundamentally driven environment.

This is just before the Friday close and you can already see how volatile and indecisive traders are on for the EURUSD pair. Other pairs are slightly better, but there is no sense in trading in. In fact, your broker may have already issued a close-only warning. This means you are allowed to close any open trades you carry over to the weekend, but you cannot open any new trades in anticipation of the low liquidity conditions. Some brokers such as FXCM and VantageFX have already reduced leveraging as well.

EURUSD 15-Minute
EURUSD 15-Minute

Yahoo! Finance is one of the only quote providers showing pre-market quotes and the EURUSD pair is already down 1.42% dropping 158 pips. There is only a few minutes until market open and we expect further unwanted volatility to persist.

EURUSD Pre-Market
EURUSD Pre-Market

Again, avoid trading Euro pairs. I will continue to be posting technical setups on all other pairs I find tradable with good winning probabilities.

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