Let's talk about volatility.
The European currency 17 years ago:
This is a young currency, but statistics are already available. During its first 10 years, the euro "went" directionally per year on average of 2,000 - 2,200 points (in the 4-digit). In a crisis situation, volatility could be even higher, for example, the rapid collapse of the euro in 2008 is from 1.600 to 1.2400 in three months, and then the growth in a month is from 1.2400 to 1.4500.
Against the background of these historical data, it is very noticeable how the EURUSD volatility fell over the past year. This, of course, had an extremely negative impact on the performance of the trend trading systems and strategies.
Over the past 12 months, the maximum price of EURUSD is equivalent to 1.1570 and the minimum reached 1.0880, which is the annual volatility of 700 points. Over the past 7 months, it has a maximum of 1.1410 and a minimum of 1.0880, which is approximately 500 points, a strong slowdown in the market.
What is the reason? The end of the eurozone debt crisis is what the euro feared in 2010-2014. The completion of the voluminous QE programs is first, the completion of the programs of the US Federal Reserve, and then followed by the ECB. Where the ECB's newly opened quantitative easing program is much smaller.
Furthermore, and perhaps most importantly, the continuation of the ultra-long period of ultra-low rates of all the main Central Banks which are the Fed, the ECB, the Bank of England, and the Bank of Japan. Against this background, the pound's rapid movements recently became the result of the volatility due to Brexit, which slightly affects the euro.
For stabilization, the euro plays its role as the "second major currency." The crisis in relations between the United States and China, due to the Trump trade war against China, has forced not only China but also other countries to ensure their reserves against US regulation in the event of an exacerbation of the crisis.
Thus, it is possible that the low volatility of EURUSD will continue for a long time and probably, strong movements will be in the event of a new crisis in the global economy.
Meanwhile, for local, the movement can start after December 11-12, when several important events will take place, the Fed, the ECB, and elections in Britain.
EURUSD:
We are ready to buy from 1.1035.
We are ready to sell from 1.0985.
