This was posted on the FXCM site. It seems important but I am having difficulty understanding what it is saying. Can anyone help and put this in more simple terms??
Thanks in advance.
Newbietrader101
QuoteDislikedShort Term Implied Vols Forecast Big Moves In The Works
EURUSD
Volatility seems to be filling out across the market, as short and long-term implieds gradually rise for all the dollar-based pairs. The euro pair’s vols seem to be among the leaders. However, expectations of a stable future for the recent rise seem to be coming under pressure according to longer implieds. The gauge has stalled since last week as resistance around 1.34 in underlying EURUSD spot comes into view. Also, though price action seems to be carving out a turn, expectations for a near-term jump in volatility is high. This is interpreted through the stubbornly high spread, formed as short-term implieds continued higher as their long-term brethren began to stall. Such a divergence between long and short-term vols is likely the result of burgeoning speculation surrounding Friday’s NFPs. Should the indicator issue a big surprise, 1.3400 resistance or 1.3250 support may come under fire from a momentous reaction.
Thanks in advance.
Newbietrader101