If the S&P 500 Doesn't Relent, EUR/USD May Break for 1.3000
Growth forecasts were downgraded and another Fed officials was laid out the conditions he would accept QE3 tapering. And yet, the S&P 500 and risk trends hold stoically above resistance. The trade potential in genuine risk aversion / deleveraging move is tremendous and thereby appealing. However, such a dramatic change from the current state of stimulus-supported confidence requires a serious push - one that the market hasn't been able to supply as of yet. In today's video, we discuss what a risk aversion would look like and the trades it presents as well as the top setups for the more probable alternative scenario.
Expect breakouts in the near future? Use the DailyFX Breakout 2 strategy to signal or confirm setups!
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.