Euro’s roller coaster ride traps traders both side

Traders are getting trapped with stop losses getting hit as Euro continues its roller coaster ride since April.

• Euro made bottom on 15^th April around 1.05 against dollar and rose steadily from there to reach 1.145 by May as European yields were sharply up from their negative zone.

ECB officials commented by mid-May, that they will be front loading purchases meaning increase the purchase rate now due to liquidity concerns and adjust it later.

• That pushed Euro from 1.14 to 1.08 against dollar, however rumors on Greek deal halted Euro's fall which was up from 1.08 on May 27^th to 1.138 by June 4^th.

However Greek Prime Minister rejected the deal and delayed IMF payment by bundling to pay at the end of month.

• Optimism soured and Euro was pushed back from 1.138 to 1.104 within mater of two days as US payroll report surprised to upside.

However Monday, there wasn't much catalyst.

• Euro poured water on hopes that downtrend is about to resume and Euro to reach towards parity and moved up almost 2% against dollar and reaching 1.134 from 1.106 in matter of a day.

Today Euro is again back at 1.123 against dollar after failing to break above 1.135.

We expect against the contrary for Euro to remain upside biased from now, however high level of volatility and noise would make it difficult to settle the nerve.

Five day average of moment shows Euro is moving about 200 pips a day, a volatility not seen since March FOMC.