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How quickly things change; in the blink of an eye the European equity markets erase eight hours of positive stock trading from Asia, and temper a little the moves made by the major pairs overnight to clear the neutral pivot point areas. Then, as quickly as it dropped, the German Dax regained ground again.

Back to the channels for most pairs it seems, and back, very quickly, to watching S&P futures markets dominate direction. It does highlight two things; the need to bank a percentage of winning trades as they hit target one, and to accept that forex values are heavily linked right now to S&P futures trade sentiment. If the S&P goes up, the dollar goes down, and vice versa.

Euro is looking the most bullish pair on Wednesday, but will get pulled around by markets aligning fair value ahead of half year, quarterly, and monthly option expiry that happens on Friday.

Things may remain volatile as each global region opens and closes their commercial trade, with the next reversal likely to be around 07:00 EDT as Chicago futures traders absorb the London fixings on oil and gold, and adjust for the LIBOR rates that are newly issued from the U.K. each morning.