Transitioning from consolidation (lower volatility and a narrower range) to congestion (higher volatility and a wider range) actually increases the likelihood of exhaustion. Today’s EUR/USD has a higher probability of being faded into when considering that past “hopium” rallies have been sold into. Will traders ultimately fade the rally? Let’s take a look at the reasons why they will in the short term. Before determining if any move (higher or lower) will be faded, let’s look at why the euro is rallying today. While I am focusing on the euro’s strength versus the greenback, the euro is rallying across the board. The ... (full story)