When liquidity, event and market risk is high, bar room brawls can ignite.
The EURUSD has completed a Draghi lap - rising into and through his speech, tumbling after his speech. The bar room brawl was a good one with round house punches being thrown, connected, missed, and causing overall chaos.
Anyway, the move not only completed the lap but went below the low.
The best thing I can say is that event days where event risk, liquidity risk and market risk are high, there is the potential for traders to go with the flow, get too one way and get burned the other way. Putting it another way, there are others who can push the market around. Whatever happens...whatever causes the price action seen above...can be blamed on more risky trading conditions. The bar room brawl has been a good one.
What now? Things should probably calm down and settle. Looking at the hourly chart, the 100 and 200 hour MA come in at 1.1321-266 currently. The low was more or less the low from Monday. We sit between those levels. Technically, the failure after making new highs, the fall back below the 1.1333-45 area, the fall back below the 200 and 100 hour MA (green and blue lines), are more bearish, but just as traders get offsides above, they can get offsides at the downside. Look for patient sellers on rallies though. I would expect them against the 100 and 200 hour MA. Stay below those lines and all is good. Move above and waters get murkier again. It would be a clue to REALLY turn off the PC for the day....(if you haven't already)...
PS. Patience.......
