Today we’ve seen the Eurusd play a game of yo-yo with price whipsawing up and down and back up again.  The ECB rate decision is now on the books with a 25 basis points cut and initially pushed the Euro lower versus the dollar.  Now we’re getting news, again, that the Greek referendum is off the table and price has come off the lows substantially.

This is volatility at its finest.  170 pip range top to bottom with multiple swings intraday.  I’ve seen twitter streams showing some traders taking massive losses due to this volatility.  I’m not sure what they are thinking.  Here is my trade plan going into NFP tomorrow.  I’m still short biased but I see the potential to finally hit the upper boundary that I’ve mentioned in my EURUSD weekly preview.  I’m looking for price to breach the 1.3825 resistance outlined earlier only to be rejected by the 38.2 retracement level at 1.3850.

If we don’t hit that high, then it’s best to stay flexible and flat positioned until we get out of this large consolidation.

2011-11-03_1020_eurusd

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