FX volatility continues to fall, with a new record low near 5.0% for the EURUSD 6-month volatility posted today. But the pair will inevitably bump up against important levels one way or another and is looking heavy into the close of trading this week. Will we suffer another week of uncertainty on the dollar in this low volatility environment next week, which is a US holiday week (most off work Thu-Fri) as we await the key ISM survey data and November jobs report the following week, or does the dam break already next week on USD developments – tough to say but we’re not far from levels that will require decisions to be made and trigger stop-based flows.
EURUSD – heavy but lacking momentum
Recently, EURUSD found support around the important 1.1000 level we highlighted in our prior Tech chart post, but the subsequent impulse has proven rather weak and we have yet to take out the recent cycle highs, and in fact the momentum is pushing back lower, with the tactical 1.1050 area facing an attack today as we continue to eye that very important 1.1000 level. Another attack on the 1.1000 area pivot level might take the pair toward the cycle lows and even beyond as the descending channel formation of the last 15+ months continues to dominate until this pair blasts at least through 1.1200.