The euro may be the 'dish of the day' but there's still plenty of work to be done before shorts really throw in the towel

When faced with a volatile backdrop the first thing I do is widen the picture on the charts. It's easy to be caught up in the short term picture and drawn into the wild moves. Keeping an overview of the full landscape can put things into a better context

EURUSD has run up the best part of 500 pips in the last few sessions and that's not a move that should be underestimated by any means

EURUSD daily chart

The break of 1.1450 has the possibility of being the key move and the level we'll need to stay above to cement this move higher. The to and fro today has moved the price above and below 1.1450, and it became support after the move back from the drop to 1.1420. Stay above and the upside beckons. Get back below, see it become resistance, and that suggests further downside. That's the shorter term view

Longer term the 38.2 fib of the 2014 drop at 1.1810 through to the 50.0 fib at 1.2227 shows how much of a buffer the shorts still have before they become really worried. That's another 300+ to 700+ pips away. It's these wider view tech levels that can mitigate the shorter term volatility so while shorts may be feeling a little nervous with these current moves, they will take some comfort that they've still got enough in the tank to stay in their positions, and potentially add to shorts

Things have livened up in the last couple of weeks and the vol will be welcome in what is usually a quieter period for markets. The issue for less experienced traders is that the jump in vol can catch you out as now we can move 40-50 pips in a blink of an eye rather than that amount being a daily range. As such we need to adjust quickly to the changing background and our trading style. Those 20 pips stops might now need to be 40-50 pip stops. If that's an issue then it's worth looking at reducing your trading size to compensate. While the potential for gains can increase so can the losses increase equally and it's up to us to adjust our trading in line with that. The lower timeframe tech may not hold as well as it did in quieter times and that needs to be taken into consideration

Markets are ever changing and the real winners are the traders who can keep up with those changes