These are slow weeks and can be a true grind when not much blockbuster economic news, like FOMC meetings or non-farm payrolls, is scheduled into the calendar. On the other hand, this tends to offer some opportunities for skilled traders.
The issue becomes how to remain profitable without the pace of high-impact news being the model for what drives market activity. The good news: there are some ways to handle these dull periods productively. We’ll discuss ideas around turning a quiet week into a profitable week, incorporating price action and targeted market events in multi-asset trading.
Explanation of Slow Trading Weeks
With major economic announcements not happening, there will be very thin direction in the markets. The possible outcome of this may be a loss of opportunities, therefore allowing uninformed trading decisions.
In this scenario of trading days, with calm weeks and news and economic events that barely keep an influence on the market, traders make a difference. There are just a few tools, along with methods, in which strategic ways help traders in finding out ways to make a profit from the forex moves.
In effecting strategies that pay attention to intrinsic market signals rather than relying on the scheduled economic events, adopting the idea may correct the sentiments. Read further for three winning strategies that will help fortify the trying times of the drop-off weeks for your trades.
1. Pay Attention to Major Economic Reports
Even though slow weeks lack in blockbuster economic reports, a couple of big reports can still move markets. To include one, just think of the RBA interest rate decision. Here are a few more:
RBA Rate Statement
Background: Under Governor Michelle Bullock, the new one, the RBA has been moderating hawkishness of the preceding years. Current expectations point to a hold at 4.10%, which places Australia as a global dove.
Strategically, the AUD will be watched, and afterward, price action will follow the RBA announcement. With a triple screen trading approach, you can always be one step ahead in the game. Keep a tab on support and resistance levels and patterns, and trade accordingly based on the principles of risk management.
Business Example
Support Level: 0.6169 (potential buying opportunity)
Resistance Levels: 0.6500 (38% retracement), 0
In the event that the RBA keeps rates on hold but signals more dovish bias, the AUD/USD may decline. Use the provided support and resistance levels for relevant trades.
2. Trade Price Action in Commodities
For sure, profitable deals are available in the commodity markets even when there is no release of the major economic reports. Take, for instance, the EIA inventory report. This is a main grabber for crude oil traders. But if such a report is being postponed, another indicator to which traders can turn their attention is the geopolitical events or even seasonal trends.
Strategy for the Crude Oil Market
Context: EIA Crude Oil and Natural Gas supply reports will be delayed this week, leaving markets nervous over increased volatility being driven by geopolitical events, including the Israel-Hamas conflict.
Tactic: Watch the price action in the highlighted interest areas. Although no real hard official report is available, still with news and rumors, the oil price may react.
Sample Trade:
Levels to Watch: Key retracement levels are 75.60 (62% retracement) and 73.30 (78% retracement).
Approach: In consideration of the seasonality trend particularly going bearish in fall, placing consideration on bidding now will make better sense rather than offering. This is in line with the trend and considerations of the market currently.
3. Analyze Multi-Asset Class Trading
Cross-asset class trading can do a decent job of dulling the edge when high-impact economic events are missing. The WASDE (World Agricultural Supply and Demand Estimates) report is a document with the ability to give tips in the agricultural markets.
Corn Market Strategy
Background: The WASDE report updates corn supply and demand. Despite the fact that the former sentiment was bearish, current harvest data could flip market sentiment.
Focus on price action and technical levels within the corn market. A bearish trend is likely to persist, and again, the main support levels are expected to provide good trading opportunities.
Sample Trade
Support Levels: Look for possible levels for bidding around 4.00, 4.25, and 4.
Technically: Note that the trend remains under pressure, look for potential bids at these support levels rather than trying to time a reversal.
Conclusion
Even in non-eventful weeks, good trading can keep you in the profit column. How do you achieve this? By aiming at key economic reports, commodity market analysis, and cross-asset class trading during the slow period. Bear in mind that your best tools are patience and a keen eye for price action.
Be it the AUD/USD, crude, or corn—an agricultural product—your trading success will be enhanced by knowing the tympanites from a slower trading week and being able to utilize selected strategies. Keep informed, manage your risk, and make the most of every trading opportunity.
