All chilies are not the same. Add a little shaving of a really explosive chilly to your pizza and suddenly your taste buds are eviscerated. Your body goes into shock, sweating profusely and gasping for water. Your eyes water and you cannot see clearly. If you've done this once its not something you'll easily forget.
A move from 1.3651 to 1.3650 is not the same as a slide from 1.3000 to 1.2999, in Euro-Dollar.
The danger for traders is that they can sometimes read too much into each currency move. Constant pressure to make a profit leaves players prone to building a never-ending sequence of new scenarios, where the market explodes in their favored direction.
Watching the market too closely is exhausting and generally a waste of effort.
Euro-Dollar's sustained break below 1.3000 is really important. A clear drive through 1.2954, this week, will reinforce the growing bearish sentiment in the euro. Attention will then shift to 1.2875 and 1.2645.
The euro swallowed a cruel chilly on Friday and the consequences will be felt for some time to come.
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