US Dollar May Finally See Breakouts During Volatile, Holiday Week Euro Unchanged Against US Dollar Despite Dismal Data – What’s Next? Japanese Yen Hints At Bigger Moves As Credit, Financial Fears Simmer British Pound: UK Data To Remain Weak, Forecast Falls To Risk Trends Swiss Franc Could Sink Further On Weak Fundamentals Canadian Dollar Forecast Worsens as Crude Oil Breaks Below $50 Australian Dollar to Look Past Economic Data, Follow Stock Performance New Zealand Dollar To Weaken As Interest Rate Outlook Plunges
·Euro, British Pound Consolidations Continue as Euro-zone PMI Signals Deepening Recession ·Japanese Yen Pulls Back From Resistance as Dow Gains During Last Hour of Trading, Closes Up 6.55% ·Canadian Dollar Brushes Off Plunge in CPI, Gains Could Accelerate on Canadian Retail Sales
Looking for a range trade in any one pair at this point is essentially a call on overall currency market conditions over the coming week. EURUSD has the most conducive setup for congestion; but at the same time, it also offers the best terms for a breakout.
Current market conditions are somewhat deceiving. Volatility has edged back and the currency market’s most liquid pairs are entrenched in long-term congestion. However, the atmosphere is ripe for an impending breakout that will soon revive a singular trend for risk aversion and the carry trade.
The US dollar and Japanese yen failed to make successful breaks higher as a sudden shift in risk appetite led the Dow up 6.5% during the last hour of trading. Will US, UK, German GDP revisions impact the forex markets next week?
Fibonacci studies are an excellent tool for a forex trader to use because they can act as a leading indicator. If used properly, the can help you to determine when to get into a trade. More importantly, they can help you get out of a trade too.