Currency Longs Caught in Nasty Bull Trap

Quite a session of trade in Europe, with many market participants feeling the burn of the nasty whipsaw price action. Initially, it appeared as though we could be on the verge of seeing a fresh wave of corrective upside in currencies, with the break back above the 10-Day SMA in Eur/Usd triggering a wave of currency buying just ahead of the European open.

MORNING SLICES



Bull Trap - "A false signal indicating that a declining trend has reversed and is heading upwards when, in fact, the security will continue to decline. "

FUNDYS

Quite a session of trade in Europe, with many market participants feeling the burn of the nasty whipsaw price action. Initially, it appeared as though we could be on the verge of seeing a fresh wave of corrective upside in currencies, with the break back above the 10-Day SMA in Eur/Usd triggering a wave of currency buying just ahead of the European open. However, after ascending just shy of 1.3700, renewed selling pressure kicked in, with the pair reverse course sharply to trade back below 1.3600 and to fresh daily lows.

Relative Performance Versus USD on Tuesday (As of 9:40GMT) –

1) YEN +0.16%
2) AUSSIE -0.11%
3) CAD -0.16%
4) EURO -0.19%
5) KIWI -0.27%
6) SWISSIE -0.35%
7) STERLING -0.47%


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