USD/CHF completely reverses its up move (did I mention this is an illiquid time?)

Author: Eamonn Sheridan | Category: News

The stops to buy USD/CHF were hit, and flushed (big time) and now the move has completely reversed


The stops to buy USD/CHF were hit, and flushed (big time) and now the move has completely reversed
Early Asia on a Monday is often a quiet time, but not always, as you have seen so far.
Its not for the faint hearted. 
Many say that this low liquidity time is a bug for the system. Others, though, argue its a feature. It'll depend on which side of the fence you are on, and may vary week to week :-D

Please do note ladies and gentlemen that these sort of moves in very early Asia are not that unusual. They are not a regular occurrence, but they do happen from time-to-time. The thing about this time of the trading week, and I warn on this each and every Monday, is the lack of a liquid market. It makes the market susceptible to such moves. Other factors are required to see a big move, but its the thin liquidity that can tip the balance.

Earlier posts on the upmove:
  1. USD/CHF on the move
  2. More on the big drop for the CHF

ForexLive
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose