Forex: Both USDollar and S&P 500 Toe the Bearish Line
Momentum has carried the Dow Jones FXCM Dollar (ticker = USDollar) and S&P 500 to the brink of a momentous trend shift. Should either break, it would represent an important change in the fundamental landscape. Yet, can both suffer a committed bear trend simultaneously? Would the risk aversion representative of an S&P 500 breakdown below 1,600 not revive the greenback's ultimate reserve status and prevent a collapse below 10,500? Alternatively, a bounce for risk-sensitive equities could allow the 'Taper' wind down pressure to sink the dollar. We discuss the fundamental elements to these different scenarios, highlight the best setups for the different outcomes and illustrate why USDJPY could represent the best of both worlds in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.