EUR/USD momentarily out of favor

EUR/USD showing very low price volatility across several time frames.

Intraday and daily EUR/USD ATR measures, up from 30 min, simultaneously shrunk to levels not seen in the past four weeks of trading. Markets with extreme low volatility do not perform well because they have less direction for trend following and less volatility for mean reversion. It is advised to wait for an expansion of volatility before entering EUR/USD.

Aug 19, 2015

China stocks rout sparks risk-off, Bundestag vote, US CPI, FOMC minutes – Key events

Chinese stocks extend sell-off impacting risk-flows across the board and negatively affecting China’s top trading partners. The Aussie slipped further towards 0.73 handle after the Shanghai benchmark tumbled another 4% today, reignites concerns over the ailing Chinese economy. The yen gained versus the greenback on flight to safety, shrugging off widening Japan’s trade deficit numbers.

EUR/USD rises to 1.1055 in early moves, Bundestag vote eyed

The EUR/USD pair extended its overnight recovery mode in to the European opening bells, trading firmer around the mid-point of 1.10 handle, as the US dollar took a breather in its recent upsurge with focus now shifting back to German Parliament vote on Greek third bailout and the US economic releases.