Range-based setups were the preferred approach through the first half of this week. Now, we have to shift gears to breakout candidates to account for our first major fundamental catalyst since the Summer Doldrums ended: the ECB rate decision. The EURUSD may seem the ideal candidate - and it does offer a distinct opportunity one volatility influx that carries us through 1.2625 or 1.2500. However, EURJPY is arguably the superior option given its clear levels and tempered exposure to NFPs immediately after the ECB. Furthermore, you should watch the ECB decision whether trading Euro-based pairs or not. There are risk trend ramifications that can translate into heavy moves for the likes of AUDUSD, the S&P 500 and gold amongst others.
Weighing EURJPY and EURUSD Breakouts on ECB DecisionBy John Kicklighter, Chief Currency Strategist
- Apr, 17 21:01 GMT DailyFX Technical Focus: 4/17/2014
- Apr, 17 00:24 GMT Trading Video: EURUSD and GBPUSD Trade Setups May Need to Wait
- Apr, 16 23:27 GMT Strategy Video: A Pound Outlook with GBPUSD at a 1.6800 Triple Top
- Apr, 16 21:48 GMT DailyFX Technical Focus: 4/16/2014
- Apr, 16 01:18 GMT Trading Video: One More Potential Risk Spark This Week in China GDP
- Sep, 05 02:48 GMT EURUSD Setups Up Range Above 1.2500 Before Key Volatility, Break
- Sep, 04 01:30 GMT EURUSD Awaits Volatility Influx and ECB, AUDUSD has RBA on Tap
- Aug, 25 02:07 GMT AUDUSD and USDollar Post Reversals, Which Will Stick?
- Aug, 24 02:34 GMT EURUSD Rally Slows as QE3 Hope Hits Saturation Point
- Aug, 23 03:28 GMT EURUSD and AUDUSD Surge after Dovish Fed, Are These Trends?