The pop and drop in EUR/USD was a killer
The moments before non-farm payrolls report, the pair shot 50 pips higher. It's one of the meanest examples of how dangerous it is to trade around the report. What happens is that everyone pulls their bids and orders moments before the release. Market-makers are gone. Specs are gone. Real money is gone.
In their absence, it's not unusual to see someone/something take advantage and push the market. Is it algos? Probably.
Where $1 billion may only move the market a few pips in normal liquidity, less can move the market a half-cent when there is no liquidity. If you have stops in the way, they can get blown out.
There is a solid consensus around the high trade so there was trading taking place there.
- Bloomberg is showing 1.1275
- FXCM 1.1276
- FXDD 1.1275
- EBS has 1.1275
It's a tough pill to swallow if you get stopped out of shorts, only to see the market go 175 pips in your direction in a flash.
Anyone get caught out?
What was the high with your forex broker?
