We got clipped on our EUR/USD short just a few points from the highs before the market reversed and headed back below our short entries. The markets are running at less than normal volume levels in here, so stop run moves by the big players are just a cost of doing business. The move above 1.3160 technically invalidated our wave count, but the market still feels heavy with old longs that could hit the eject button ahead of the year-end. A big step back to get a look at the daily chart shows a very simple parallel uptrend channel that is dancing on the edge of collapse. While the market trades around such critical, and obvious, technical levels price action should be expected to remain choppy. I still believe the market is headed lower, but an entry at current levels does not offer any reasonable spot for stop placement keeping our risk-to-reward ratio inline. So for now, I am going to step aside until another quality setup presents itself.

Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.