Dow Close at Critical Support Major Opportunity for Dollar, EURUSD
Congestion this past month for so many of the market's favorite trading assets (equities, commodities, major currency pairs) hides a critical fundamental fact: that investor sentiment is in control. It just so happens that there isn't a decisive view from the masses as to whether it is time to load up on higher yielding assets or deleverage out of expensive positions. With the Dow Jones Industrial Average closing this past week just above critical support at 13,300 and the S&P 500 above 1425, we head into next week with considerable opportunity.
With the entire market on risk line, a serious break lower for US equities could easily translate into a EURUSD move below 1.2800, NZDUSD breaking 0.8150 and GBPUSD sliding below 1.6000 amongst others. In our weekend video, we discuss why the potential is so high, what a serious shift in risk would look like and various trade setups that can take advantage of.
New to FX? Watch this Video
Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.