Forex: Is There an Alternative to EURUSD Breaking 1.2825 on Risk?
The fundamental headwinds are building and hope for further waves of fresh stimulus are receding. Consequently, risk aversion is finding greater traction amongst the speculative ranks which brings us closer to the long-awaited risk trend. With EURUSD under the most scrutiny owing to the Euro's struggles with Spain and Greece (not to mention its place as a reserve currency), a break below 1.2825 would mark a reasonable step for a broader sentiment shift. However, FX traders know to watch out for last-minute rescue attempts from European officials. Under the right conditions, EURUSD could clear 1.3100 and drive to a short-lived but aggressive rally. We discuss these alternative views and much more in the weekend video...
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.