EUR/USD: Look for sharply increased volatility this week
We’ve had a number of weeks of sideways trade but that’s about to end in my opinion, so forget about trying to pick the right direction all the time and put your trading cap on!
The election on Tuesday in the US is the big risk event and the market hasn’t really put on any big trades ahead of this it would seem. Last week some technicians were of the opinion that the bullish cross of the 50-day MA over the 200-day MA were an indication that the market was turning bullish yet today others are saying that they break below the 200-day MA is bearish! Hocus-pocus, technical schmanalysis; nobody has any clue where anything is going. Wait for some short-term trends to initiate, then counter-trade as trailing stops get triggered in an environment lacking confidence and momentum; that’s how I read this market.
Is it possible that we see levels near 1.2650 this week? Absolutely! Is it possible that we see levels near 1.3200 this week? Absolutely! I’m hoping that we finally get a market where quick-witted traders can have a definite advantage.