EURUSD: Should We Position for a Breakout Or Range?

Risk trends are rising and the dollar is on the verge of a pivotal turn lower, but does that give the green light for EURUSD or the S&P 500 to rally higher in the near future? Speculative appetites have certainly diverged from the fundamental outlook, not particularly unusual for markets. However, progress for risk-positive (anti-dollar) trends still falls back onto the general conditions of the markets. To sustain and build upon such a the deviation (to provide progress to this nascent trend), we need growing volatility and building participation. That is not the market backdrop we are currently working without however.