423 pips today (so far today) - December 3, 2015
The EURUSD has traded in a 423 pip range today. HUGE.
When was the last time the pair had as big a range for the day?
You don't need to go too far back. On March 18, 2015 the EURUSD traded in a 456 pip trading range.
What was the catalyst?
That was the FOMC meeting that the Fed cleared the way to raise interest rates for the first time. They did it by dropping the buzzword "patient" from it's statement.
So the dollar soared right?
Actually the EURUSD soared from a low in the day at 1.0579 to a high of 1.10425 first before heading back lower and closing at 1.0860. Although the Fed was more hawkish, Yellen did say that rates won't be raised until later in the year.
Today, the catalyst has been the ECB's decision to lower rates, extend the duration of QE, but not to increase the amount of stimulus. That has sent an over short Eur market, screaming higher. The days low was 1.05187 not far from the low back on March 18. The high so far has extended to 1.0941. Unlike the March 18 day, the pair does not seem to be backing off.
There is a few more hours of trading left to go in the day. Perhaps the pair can keep the squeeze going and get that range up another 33 pips. That would take the pair up to a new high for the day of 1.0974.
What do you think? Can we do it?
