Euro Choppiness is Out of Control – Let’s Wait for a Break
EURUSD – Impressively choppy Euro/US Dollar price action has made for similarly indecisive forex trading crowd sentiment, and we’ll need a significant break of support or resistance to favor new trades.
Trade Implications – EURUSD: Our purely sentiment-based Momentum2 strategy most recently sold Euro from $1.2877, while our volatility-friendly Breakout2 system sold at $1.2784 only to get stopped out on the post-ECB surge. Needless to say it’s been a confusing day of trading, and choppy price action is never kind to our trend-following and breakout-based systems.
Our Senior Technical Strategist is waiting for the Euro to break to key support at $1.2660 or a break above $1.2890 to take a strong trading bias. Keep stops tight and trade with reduced leverage given extreme choppiness across major forex pairs.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.