Out of nowhere, and based on no news whatsoever, the EURUSD just jumped by 40+ pips in what appears to have been one trade. There is no news to justify this move, as the only possibly related headline to come out was that the Greek finance minister sees parliament vote on the new EUR 130bln aid deal in January. This is neither news, nor is it bullish. In addition, we have information now that Intesa has now been halted on the Italian market due to excessive (downward naturally) volatility. Which begs the question: has the ECB decided it has had enough of bond monetizations and is now actively engaged in FX warfare ... (full story)
DislikedAt this moment of time, no news actually means good news for EUR. There were so many bad news coming out from EUR in the past few days, if suddenly bad news just stop coming out, it means the situation is not getting worse at least for the moment. So it is viewed as good news for EUR.
At the same time, US debt ceiling is now very close, and the super committee can't find an agreement yet. That means it is bad news for USD.
Maybe that explains the upward move of EUR/USD? and Maybe some big boys foresee the EURUSD is going to go up, so quickly...Ignored
DislikedIt appeared to be a low volume spike. To be disregarded as a plain noise for the traders who like to work with longer time frames. Ofcourse if some-one is getting bull trapped with these inconsistent spikes then its the trader's fault. The spike never maintained itself and is now facing the resistance. I guess its agonal breathing for Euro for a while till the weaker economies get amputated from the EU. I am short since 1.4000 zone and will be till 1.3000 zone. Time does not matter with my style of trading.Ignored