Hope everybody in US enjoys long weekend, with trips, picnics and bbq’s. Whether permitting, of course. Locally this is not the case, so my fairly ambitious plans have been scaled down. But even as is, I’m not watching the markets today, and have no intentions to trade. Historically,  Labor day weekend is not known for much movement in currencies. One could try to see how Yen opens, but recently, apart from doing its own thing, JPY has been very touchy to US news, like on Friday. With America taking it easy, chances are Yen will follow. Barring any unforeseen, big time fundamentals emerging, I see no reason to be glued to computer screen.

Things might change a little bit once Europe opens, which is at midnight my time. I will not be putting my usual day, or night, in, have more plans for Monday, but will take a look at the charts during that time. Once again, last few years lacked significant moves around this period, but since they are open for business, some movement in European crosses is possible. My interest would be only in existing set ups, hoping they develop into trades, rather than look for something new. An example would be EUR-CHF.

This is what I mean- situation is in place and order can simply be placed and walked away from. Euro-Franc moves relatively slow, these days at least, so one doesn’t have to worry too much about huge swings. I want to buy it at 1.5193 using hourly chart. This projects an objective of 40 pips, very modest by my standards. Not a bad looking set up and fits my lazy, holiday mood. I’d probably take it even during normal, non-holiday, trading conditions.

It will be interesting to see if last week’s moves translate into something bigger, than just a blip in longer term moves. For example, GBP-JPY has been falling lately, but last few days brought a rebound. Is it a reversal or only a bounce? Many more currency pairs are in similar situation. We should have an interesting week, once the holiday slumber is over. Starting Monday night, tomorrow.

Mike K.