EURJPY, AUDUSD and S&P 500 All Ready to Reverse, But Will They?
Equities, carry trade FX pairs, fundamentally troubled currencies, they have all thrown the breaks on bullish trends and are now carving out patterns that frequently preceed meaningful reversal. If there were ever a time to combine fundamentals and technicals, this would be it. The curbed bull trend itself in risk trend is enough to encourage the 'break' in a correction, but a true and lasting unwind in high beta exposure requires the 'convincing' that fundamental reasoning provides. Event risk like the morning's New Zealand 4Q GDP reading, the upcoming Chinese manufacturing activity report and European PMI figures are all good for volatility; but is it enough to flip the bear switch?
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