The present FX market is totally lacking in conviction and seemingly unwilling or unable to follow through on any major breaks or trends. Yesterday in early Europe was a typical example with some of the EUR crosses like EUR/AUD getting completely oversold in a stop-driven market before rebounding to starting levels.
Break traders are operating with tight stops and only the banks and brokers are left satisfied.
Don’t have a strong view, wait for 50 pip moves, and fade everything; that’s the way to trade these markets in my view.