We’re just emerging into 2015 and the markets are already lighting up with some unexpected volatility.
During the brief market hours last week after the New Years break, the EURUSD experienced an intense sell off – which some of the other major pairs also shared. During this week’s market open, the EURUSD opened with a negative gap and continued to sell off during the very early asian session.
The sell off rammed into a weekly support level – which the bulls were quick to defend.
Given that the market is now gapped away from its mean on the daily and weekly chart – we’re most likely to see a bullish mean reversion occur here, especially with weekly support obstructing further moves lower.
This could be a major turning point for the EURUSD here and kick off some good bullish follow through to usher us into 2015. For those with the appropriate risk appetite – there is already a 4 hour counter trend buy signal off weekly support.