EUR/USD – Prepare for a Trend
|Prepare for a EURUSD trend. Weekly Bollinger Band width is the tightest ever (since inception of the euro). Bollinger Band width measures the difference between the upper and lower Bollinger Bands (2 standard deviations from the 20 period average in both directions). Band width widens during a trend (range expansion) and contracts during a range (range contraction). Market conditions oscillate between range and trend environments thus extremely narrow bands indicate extreme range conditions and heightened risk of a shift from range to trend. I don’t have a strong opinion on direction but will note the similarity between recent price action and the mirror image of 2013-2014.
EURUSD Weekly (magenta dots indicate historically low band width)
EURUSD Weekly
EURUSD Weekly (zoomed in)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.