What to do on Friday night on Forex?

As widely known, prices on Forex move in trends. The trend can be either upward or downward. Besides, there can be situations when the price direction is not definite, and in such a case the trend is flat aka sideways.

There are two factors one should pay attention to when trying to define the weekly trend:

The way prices move on Friday during the American trading session.
The way prices behave at the market opening on Monday. There can be a price gap at the opening which usually occurs when the broken resistance levels turn into support ones, and prices rebound from these levels.

The channel of resistance levels formed between the American session on Monday and the Asian session on Friday can help traders to spot the starting point for the upcoming weekly trend.

The price behaviour during the American trading session on Friday can tell us a lot about the future dynamics. This is the period when the trend force is tested through the weekend news. If a negative news release had a minor impact on the market dynamics on Friday, it may well mean that brokers and banks were not ready for such surges and the reaction is likely to be stronger on Monday.

At the same time, if the price movement on Friday’s American session is weak, it means that no definite trend has been formed yet, and the price direction will be known only on Monday.

The economic calendar is another factor that can help to predict the trend for the next week. Some events can have a significant impact on this or that asset. Interestingly, prices are usually most active before the news release.

To sum up, the price behavior on Friday can help traders define the trend for the next week.

If potential force of a trend is very strong and there was a price spike on Friday, then on Monday or Tuesday a correction, a reversal, or a new trend wave can be expected.
If there was a price spike against the trend on Friday, then the correction is likely to occur on Monday or the first wave of an opposite trend can be formed.
If price movement was sluggish on Friday, then some stronger actions can be expected on Monday or Tuesday.

So, answering the question in the title, on Friday night traders need to watch the price behaviour in order to foresee the possible trend for the next week.