AUDUSD Hints at Risk Reversal, Will Chinese GDP and US Earnings Confirm?
For the past few weeks, we have seen risk trends rise against underlying fundamentals or markets simply level off with indecision. This has curbed the development of meaningful trends and thereby required more active trading with more proximate stops and targets. However, there were early signs of a genuine risk aversion trend this past session as the Dollar Index finally cleared consistent resistance for the past month and the S&P 500 finally broke the floor of its rising trend. That said, a break and follow through are two very different levels of conviction. If we are to develop a clear trend, a strong fundamental push is needed to align investors outlook. We head into our next wave of major event risk to see if that trend can take root before the weekend.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.