I don't trade this pair but it is rather incredible to look at. A true flash crash.
I would be surprised if the Tim Cook Apple tank caused this. It wouldn't have rebounded. Futures are still trading lower on that news and we will likely see a very nasty open tomorrow. I plan on being flat. I don't think there is a fundamental reason for this.
For once I think all the people who claim it must be the machines are probably right, and also not totally right at the same time. This looks to me like a massive liquidation event. As it was mentioned, people probably had massive sell orders sitting on key support levels. After the first one hit the rest of them tumbled in suit. The scale might have been due to machines, but the underlying cause would've occurred in outcry as well. The subsequent rebound was almost certainly the machines buying up as it rebounded over key supports again. I would've enjoyed listen to the forex squawk. Unfortunately I don't have a good service.
I wouldn't want to be one of the people on 100x leverage in one of those bucket shops when this happened. Eeesh.
