Forex Traders Face Possible Trend Resumption against Potentially Extreme Volatility
The U.S. Dollar Index is not far from the 81.80-82.30 break-out level which opens the roof to 85.50 plus. Such a move could yield 300-500 pips downward for the EUR/USD and as many as 400-700 pips for the GBP/USD.
I prefer to see the EUR/USD give us the ‘boomerang’ trade opportunity by rising back to 3900’s plus (or close as possible) for what could be a dramatic bear trade entry. The GBP/USD ‘boomerang’ level is about 150 pips north too. Depending on what unfolds within the U.S. Dollar Index I may issue a GBP too.
EUR/USD
Resistances: immediate at 1.3816-45, 1.3917/27/39/65/77
Supports: immediate 1.3757/43-22, 1.3695, 1.3583-47, 1.3431, 1.3333
Recent volatility has increased and trend resumption may be near. Prefer to sell a rise to mid-level resistances stated above but I will also need to be prepared to consider a breakout entry and sell a break of key support in the low to mid 3700’s.
Conversely – some breakout attempts or, dramatic increases in volatility get met with a slow-down into slight range trade and then a decision is made to resume volatility or to consolidate. I will remain vigilant.
When markets wakeup like this with volatility – I hope to stay sharp and strive to make the right decision. I hope to issue a Trade Alert soon.
Market Timing Alert for Price Action: All times New York EDT
June 15th 6:00-6:30 pm EDT for 2.5 hours duration with moderate price action
June 16th 2:-2:30am for 3.5 hours duration with strong price action
Britt Maras – Senior Currency Strategist
Hey Britt,
This is awesome! WIll you issue entries, s/l’s and t1′s in the trade room? I will be away from my computer with customers and won’t have access to the trade room but want to take advantage on the MTA at 6 – 6:30 tonight.
thanks,
Adam