Forex: EUR/USD Offers Trade Potential if Risk Trends Rise or Fall
Just when it seems that we are starting to see the kind of risk-based move that can provide a lasting, market-wide trend; market conditions threaten to put the move on ice. That could stall the early bull run for the US dollar and return pairs like EURUSD and AUDUSD to the chop that has plagued Forex traders for months. Next week's US holiday (Thanksgiving) historically drains the market of speculative conviction. Pair that with the possibility of short-term relief for Greece and/or a delay in the Fiscal Cliff worries and congestion may be the name of the game. To lay out trade potential for all possible outcomes, we discuss setups for continued risk aversion (EURJPY, AUDUSD, etc); a rebound in risk (EURUSD, GBPJPY, etc); and pairs not beholden to the common speculative tide (AUDNZD, AUDCAD, USDJPY).
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.