Just a wee bit of volatility as the German court decisions was read. Reminds me of the Obamacare verdict some months ago in the US. Very difficult to trade off of complex, multi-part news events.
EUR/USD slumped to the 1.2815, a near-perfect entry point for those left behind by yesterday’s rally. We stalled their Friday and Monday before finally breaking higher on Tuesday.
We’re now consolidating after a sprint as high as 1.2937. Barriers at 1.2950 and 1.3000 are eyed. SNB selling is rumored, as it always is.
My guess is that the 1.30 barrier will be heavily defended, just as the 1.2000 level was on the downside at the end of July. But with the market trimming a structural short, it may ultimately fail to halt the rally. There comes a point in each trader’s life where he just has to cut his losses…
