I’ve refered to these pairs many times before as “face rippers” in that……they can move with such violence and such volatility as to literally…..well – you get it. It can get pretty ugly if you’re not careful.
It is not uncommon “in the slightest” to see these pairs move some 200-300 pips in a given 24 hour period, only to shoot back 150, then jet off in the opposite direction another 200 or more. They are “crazy volatile” and cannot be treated in the same fashion as one might consider trading a “pussycat pair” such as – lets say..USD/JPY.
I’m talking about EUR/NZD, EUR/AUD, GBP/NZD and GBP/AUD.
These guys can produce some major moves, and in this case the “upside potential” is easily….EASILY 1000 pips and higher – if we finally see the commods (AUD and NZD) roll over, as they appear to be doing now.
You trade these pairs as if holding a hand grenade so….careful, careful, small (tiny small) order with “super wide stop” if you look to stand “any chance” of taking the ride.
Again, you may consider that I’m usually “early to the party” so get these on your screens – and watch for some “serious fireworks” in coming days.