I’m always banging on here about needing to expect the unexpected and we’ve seen a classic case this morning
After session upon session in the doldrums and tight ranges ( and moaning about lack of action) we’ve seen an explosion in a short space of time with GBPUSD rallying sharply on the Pfizer/ Astrazeneca news, and then EURUSD surging higher/USDCHF lower on what now appears to be Russian USD liquidation interest
Yes I know I’ve been saying play ranges and not get too carried away and I stand by that. In real terms we’ve seen a decent move so far but not a major one. Not so long ago we had these moves all the time and frequently during one session so all things are relative and this just seems a big one compared to recent events.
It may well be the start of a seismic shift or just a couple of plays catching traders/markets off guard. Either way you have to decide which camp you’re in – long or short/medium term trader. If the latter then make sure your stops are tight enough and don’t go chasing the price. It will only end in tears as volatility varies and you’re left at the wrong end of a nasty game of pass the parcel.
Embrace each scenario as it presents itself
