 The one thing I love about trading the EUR is that it’s so much more predictable that the equities markets. Case in point . . . today’s overnight action where we saw a repeat of Wednesday’s perfect storm that produced a 100 pip drop down to 133.00, but in this case the EUR dropped to 132.00 dead on before a modest rally attempt.
Of particular interest is the price action relative to the OL (orange line indicator) since, during the course of the entire TRAK session (9:00 to 14;30), price was never able to break above it. A closer look at Wednesday’s chart will reveal an eerie similar in price/time dynamics from 9:00 to 14:30 with today’s chart showing a bit more volatility, perhaps a reflection of  increasing uncertainty about the goose stepping North Korean situation and the possible wider consequences if things get out of hand. The EUR has now retraced back to the August highs. A swoon to the August lows could take it down to a 126.50 level . . a distinct possibility given the current technicals.
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