I’ve mentioned EUR’s tendency to reverse on whole numbers and overnight we saw 136 provide a 2 hour squat bar consolidation before EUR jumped up in time to be captured by both the Dipper and Little Dipper. The Dipper had a 1o pip stop loss, but the Little Dipper made up that loss with an 80 pip return on the first half and a 65 pip return on the second half so we’re in the green going into the US open.
Those following the EUR through the Asian session may have noticed that the easy money straddle setup that I laid out a few weeks ago has been hard to detect over the past 10 days as volatility has spiked considerably during that otherwise typically ho-hum period. This morning’s EUR TRAK is decidedly upslope, so much so that the odds are favoring a divergence from the lower band to either a lateral or downslope mode. Sooner or later price has to jump the TRAK, as evidenced by yesterday’s behavior at 14:00. In the meantime, it’s another POMO day so the odds are favoring an equities surge, whose coattails EUR usually rides. And you thought trading was easy.
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