Hello everyone,
Seems like the Forex market is getting ready for the imminent summer period. We all love to take a break in summer, or at least to slow down a tad. And so do the markets.
At the end of each month I take some statistical notes for my own analysis. One of them is the Average Daily Range for each currency pair for the previous month. Well, I am noticing a sharp ADR-decline across the board. Summer months are prone to range-bound conditions, thin volume and weaker levels of support/resistance. Perhaps we should add to the list the blatantly-tighter trading ranges?
Have a look at look at the data posted down below. In this list, I compare June 2007’s Average Daily Range with the data I collected three months ago (meaning March 2007). The results speak for themselves:
Seems like the Forex market is getting ready for the imminent summer period. We all love to take a break in summer, or at least to slow down a tad. And so do the markets.
At the end of each month I take some statistical notes for my own analysis. One of them is the Average Daily Range for each currency pair for the previous month. Well, I am noticing a sharp ADR-decline across the board. Summer months are prone to range-bound conditions, thin volume and weaker levels of support/resistance. Perhaps we should add to the list the blatantly-tighter trading ranges?
Have a look at look at the data posted down below. In this list, I compare June 2007’s Average Daily Range with the data I collected three months ago (meaning March 2007). The results speak for themselves:
- EURUSD: 58 pips in June vs. 72 pips in March.
- GBPUSD: 82 pips in June vs. 121 pips in March.
- USDJPY: 60 pips in June vs. 124 pips in March (massive drop!)
- USDCHF: 59 pips in June vs. 94 in March.
- AUDUSD: 56 pips in June vs. 62 pips in March.
- USDCAD: 81 pips in June vs. 67 pips in March (ADR has increased)
- EURJPY: 93 pips in June vs. 154 pips in March (massive drop!)
- NZDUSD: 69 pips in June vs. 88 pips in March.
- GBPJPY: 139 pips in June vs. 285 pips in March (massive drop!)
- EURCHF: 56 pips in June vs. 71 pips in March.
- GBPCHF: 106 pips in June vs. 145 pips in March.
- EURGBP: 24 pips in June vs. 37 pips in March.
As you can see, there’s been quite a significant drop in the market activity as of lately. Oh well, seems like the summer is finally here!
Now, if I could just remember where the hell I left my swimmers…