A couple of weeks ago it looked like the dollar had the potential to propel to new lows sending the EUR/USD higher toward 1.1500 and above.
The Federal Reserve reversed the Shanghai Accord (weakening US dollar to help China’s economy) but this week the Fed meeting minutes turned hawkish sending the dollar from that breakdown move to return with strength. Only there was very little follow through on the USD breakout against all currencies making it tough for trading.
It was very close to be an excellent week. Thursday morning during the London/NY overlap we were well positioned but there was no follow through on the USD breakout. Yet. It should continue early next week.
150 pip range for the week. Difficult.
This week perfectly illustrates one of the reasons the market has been so difficult to trade lately. Any definitive move has sharply reversed. Breakouts and breakdowns are getting faded as the market continues to chop along…
I am confident we return in stride very shortly, the ranges will open up as contraction moves to expansion.