Will the ECB Force Both a EURUSD Breakout and Trend?
Though the speculative ranks are filling out once again, we still haven’t seen a strong swing or breakout move generated in the capital and FX markets since the lull weighed us through August. That is looking to change with the upcoming ECB rate decision – an especially threatening event considering we are currently carving out the most reserved EURUSD market conditions since March.
The First Consideration is Volatility:
- While many traders jump to speculate on direction, they should first ensure that there is enough influence in the event to force the critical first step, breakout.
- Trading specific news requires a careful trading approach. Read David Song’s setup for the impact of the ECB rate decision.
DailyFX Analysts Positioning Ahead of ECB:
DailyFX Technical View of Euro Ahead of ECB:
- Technicals are still filling out a long-term EURUSD bear channel, but even a further driver higher could prove a temporary correction in a larger trend
DailyFX Fundamental View of Euro Ahead of ECB
- Many of the euro (and even some risk-based) pairs offer potential in a breakout situation, but EURUSD and EURJPY present the best market conditions for such a move.
--- Written by: John Kicklighter, Chief Strategist for DailyFX.com
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