Traders, we’ve been watching these levels hold on these very strange ranges. EURUSD is in a 500 pip range in what has to be the most fundamentally volatile month since 2008. We’re still trying to gauge market direction, and for that reason we’ve been very cautious.
Trading Forex is not just about breakouts and fibs, it has plenty to do with understanding the overall market conditions, and these conditions suggest a storm is brewing.
Below is the write up we offered in Premium. You’ll see (if you look at a live chart) that the markets behaved at that 8860 level.
Reasons for Consideration:
The markets are at a bit of a loss at the moment. With the fundamentals unclear, German stocks fell considerably today. No other real reason. Equity markets can’t find stability, and we look to the EURGBP to see if the two majors in Europe can help us figure it out.
Highlighted are two areas where the market offered pretty severely. If we go beyond that level we should quickly get to the level beyond.
Reasons for Concern:
The EURUSD is behaving oddly, and for that reason we approach the rest of the week with caution.