Veterans Day Moves tend to be tight; What should traders look for?

Traders should be anticipating a resumption of the move in the longer-term direction of the trend


Happy Veteran’s Day to anyone who has served their country anywhere!

Veteran’s Day is a bank holiday in the US, and therefore the US bond market is closed.  As bond traders are off, many other market players take the day off as well.  With low participation during the US session, moves in the market on bank holidays should be taken with a grain of salt. This is to say, with light liquidity, especially after the London fix, moves can be enhanced if one player decides to add to or take from a large position.  

On the other side of the coin, traders also should not be concerned about little price movement in a particular asset.   For example:  just because there is no volatility in EUR/USD today, doesn’t mean that there won’t be tomorrow.    Notice that in EUR/USD, the range between 6:00am and 11:30am ET is only 22 pips:

eurusd 15 ci

Source: Tradingview, Stone X

On bank holiday’s such as Veteran’s Day, traders need to remember that despite lack of activity, or if there is a large move on light volume, that markets will tend to move in the direction of the larger trend when the traders return. 


Trade EUR/USD now: Login or Open a new account!

Open an account in the UK
Open an account in Australia
Open an account in Singapore


The longer-term trend since early June in the EUR/USD has been lower. Therefore, bears may wish to take advantages of any bounces to position themselves for a continued move lower in EUR/USD, looking for a longer-term move in the same direction.  Levels that bears will be looking to sell are the horizontal resistance just above at 1.1495 and the November 5th lows at 1.1513.  Of course, there is always a risk of a move back to the top trendline of the channel, but that’s what stops are for.  If one chooses to short EUR/USD, targets can be the bottom channel of the downtrend near 1.1350 or the 61.8% Fibonacci retracement level from the lows of March 2020 to the highs of January 2021 near 1.1290.

eurusd daily ci

Source: Tradingview, Stone X

Remember that Veteran’s Day, like most bank holidays, tends to be slow and have tight ranges, absent a catalyst.  However, there could always be that one fund who enters a quiet market to adjust a position.  Regardless, traders should be anticipating a resumption of the move in the longer-term direction of the trend when traders return the next day.

Learn more about forex trading opportunities.


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.