EURUSD Hits Four Month High, Volatility Will Increase with ESM Vote
Hard technical levels are falling to ramped volatility in the lead up the Fed rate decision. The EURUSD offered a clear sense of how these market conditions can overwhelm otherwise influential technical levels like its 200-day moving average and a multi-month trendline. This pair will remain flighty through the upcoming session as we wade through a round of Euro-area event risk. While events like the German Constitutional Court's vote on the ESM program and the EU's proposals for the Banking Union may not carry the same trend development capabilities as the Fed decision, it can certainly spark disruptive volatility. It is proving a danger-fraught approach to the week's top event risk.
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