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Before You Trade a GBP/USD or EUR/USD Reversal, Consider This...

Before You Trade a GBP/USD or EUR/USD Reversal, Consider This...

John Kicklighter, Chief Strategist

The dollar put in for its biggest drop in two months as the Dow Jones Industrial Average extended its longest rally in 16 years. Fundamentally, this is the connection to risk trends that we expect to occur. And, with that fundamental backing; it would seem that the GBPUSD's reversal back above 1.5000 and EURUSD's proximity to a possible trend reversal. Yet, there is still a serious disconnect that could immediately sabotage a meaningful drive from these and other pairs: risk trends. We discuss the scenarios and trades with these high stakes in today's video.

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.