As of yesterday’s American trading session, EURUSD defined a relatively narrow price range (some 55 points wide) with abrupt moves amid the FOMC meeting minutes. This eventually resulted in activating multiple stop-loss orders placed by short-term traders (who are usually referred to as scalpers).
Then the currency pair didn’t want to wait for the “right” time and pinned through the bottom of the range. This looks really strange, especially if to consider the fact that the ECB is about to publish its interest rate decision. Most traders anticipate interest rate cuts. So, we wonder what this wake-up call might mean.
According to the SRP Department of Masterforex-V Academy, this might mean anything. Therefore, traders should be careful when making their trading decisions at this point as they are risky anyway. However, there is some facts to consider. One of them is that the price has just finished forming a bearish ABC pattern of level m15-m30 within the framework of a bigger uptrend.
