We get the sense that the market is being handed over to algos more and more before the end of the year. On a day when we’ve already has a 100 pip range in EUR/USD, that means the machines can run the market up and down with abandon before they run into any pools of liquidity.
As Sean likes to say, play the edges of the range, not the middle. We remain enamored of th idea of rally-selling in EUR/USD.
China is defining the range today, buying ahead of 1.4300, selling toward 1.4400.