EUR/USD has returned the middle of this year's range, but it may be near the peak of a developing range.
EUR/USD traders have not done well this year.
They bought at the start of the year, and EUR/USD fell.
So they sold.
The pair slumped, then jumped.
EUR/USD has returned to the middle of this year's 1.0788-1.1225 extremes.
That neutral level reflects traders' uncertainty.
There's a net short remaining and in light of the broader unwinding of risk there may be more short covering nL2N2AS058.
That said, there's also cause to seek a continuation of the downtrend.
Volatility is higher but is historically low.
Traders should expect more movement but not great movement.
The level of vols suggests the trend holds.
The trend has been a series of gradually declining ranges.
The peaks of ranges occurring near the 200-DMA.
That's now 1.1099.
If EUR/USD were to quickly rise and close over the 200-DMA and daily ichimoku cloud 1.1110-26 it should be a game changer.
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