Potential High with EUR/USD Near 1.3000, USD/JPY 100 and S&P 500 1,535
Traders' appetites were no doubt whet by the clear potential so many different currency pairs and capital market benchmarks presented into the end of this week. On one end of the speculative spectrum, the S&P 500 closed just above the neckline of a head-and-shoulders forming at record highs. On the other, the USDollar was stationed just below the midpoint (50% Fib) of the past decade's range. The alignment of various risk-sensitive markets to serious break feeds into fundamentals that have gradually leveraged the pressure behind the divergence in price and the true elements of risk-reward. In the weekend video, we discuss specific trade opportunities for both scenarios - risk aversion (EURUSD) and risk appetite (USDJPY) - outcomes as well as the fundamental cues to watch for.
Expect breakouts in the near future? Use the DailyFX Breakout 2 strategy to signal or confirm setups!
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