GBPUSD Breaks 1.6100, AUDUSD Threatens 1.0175 But Risk Trends Absent
Markets that are typically synced by the ebb and flow of investor sentiment are taking to vast divergences. On one hand, we have AUDUSD that has dropped to test serious support at 1.0175 and US oil which notched its second biggest daily drop this year. On the other, we find the highly sensitive S&P 500 slowly drift higher and EURUSD refusing to clear either 1.2950 or 1.2800. There are excellent technical setups and heavy biases for some pairs; but without conviction in investor sentiment, trade potential is weak. We discuss the setups for both 'risk on' and 'risk off' scenarios as well as my reasoning for shorting GBPUSD despite fully fundamental confirmation of trend in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.