Implications of Playing the Range

FX algos and mean-reversion traders see no economic value in breaking EURUSD out of its 2-week long consolidation range of $1.30-1.32 before next Wednesdays key FOMC decision, which could well deliver market-destabilizing outcome of one-more hawkish member in addition to Mr. Lacker. Looking at the frequency of Eurozone rescue packages and ECB operations, note that the first three bailouts were given at 7-month intervals (see chart), followed by the first LTRO (December 2011), which was deployed 8 months after Portugals bail out. For the trading implications of these ideas, see our latest Premium Intermarket Insights here: http://ashraflaidi.com/products/sub01/access/?a=628 Non Subscribers, can click here to join: http://ashraflaidi.com/products/sub01