EUR/USD/Flows and Orders

EUR/USD: Hit by early wave of Algo selling

Not quite sure what the signal was, or perhaps they are all just chatting with each other and decided to undo whatever happened in Asia, but whatever the reason the Algos are being blamed for hitting the EUR/USD hard in very early London trade. The pair fell from 1.2735 to 1.2705 quite quickly but remember that these guys are basically all intraday jobbers and will not sit on big positions for long.

The strategy actually does make sense to me; as one session comes to a close, look to trade contrary to whatever intraday moves happened (presuming that there was no fundamental news) because session traders will be looking to square up their positions so you give them a hurry up call!

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