Usual rules still apply; sharp moves followed by sideways action

Unfortunately the early-European move in EUR/USD has followed recent market behaviour and started trading sideways after a sharp 50 pip move. Once market expectations become entrenched, it’s pretty hard to shift them, and most traders are not looking for any more than 50 pip moves now.

Australian CPI will be the main event on today’s diary. There are still plenty of strikes and expiries around .9400 in AUD/USD so 30/40 pip moves either side will attract plenty of interest.