Thoughts on EUR/USD and VIX divergence
Watching the $EURUSD move today, it touched 1.20 and held, which feels like a significant psychological barrier. If we get a sustained break above that, I'm looking at potential further upside, but the VIX still seems to be clinging on, which suggests underlying caution in the broader market. It's an interesting divergence that keeps me on edge, and if VIX spikes while EUR/USD tries to push higher, that could easily invalidate the bullish sentiment I'm seeing for the pair.
That's a good observation regarding the EUR/USD and VIX divergence. While EUR/USD could certainly push higher, the VIX clinging on might suggest that some institutional players are still hedging against broader market volatility. It's a classic "risk-on" currency vs. "risk-off" sentiment indicator conflict worth monitoring closely.