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Down here it's not really anything to do with options barriers any more. EUR/USD just took out a load of intermediate key levels, and the market seems to have been caught long & wrong. IMM data showed that net EUR longs in the week to the 17th August was at a 4 week high. It was always going to be a bit of a move once the 1.2285 / 1.2385 range was broken as I guess a lot of stops had built up.
I think it should calm down a bit now. This whole move from 1.2250 to 1.2060 ish has just filled in the gap that was made over the payrolls shocker earlier this month. I reckon we have one more look to test say 1.2175 and if this fails we could well see the model types try for the year's lows.
Or maybe that would all be too logical.
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