EUR/USD hitting a pocket of air
Skerdian Meta • 1 min read
EUR/USD jumped from 1.1070s to 1.1119 in less than 30 minutes and it doesn´t seem like there is an apparent catalysator behind this move. Som other USD forex pairs have moved up as well but only slightly. While EUR/USD has jumped more than 50 pips. Some forex trader refer to it as "hitting an air pocket" which comes from aviation, you know, when the plane hits an air pocket and it feels like a small dive. In this case, it looks like an inverse air pocket because this forex pair is moving up.
The two 100 moving averages are providing support and resistance
Someone may suggest that there might have been a fat finger, when a trader places by mistake a very large buy/sell forex order. But, it doesn´t look like a fat finger because in those occasions the price moves up or down in a matter of seconds. Wait, I just heard that it might be related with the options cut which usually takes place at 4 pm London time. Forex traders are positioning themselves before the options expire in about half an hour. Anyway, EUR/USD seems to be stuck between the simple and smooth moving averages on the H4 forex chart.