US Dollar Ends Best Run in 21 Months, S&P 500 Continues to Drop
Investors are still reeling from the Federal Reserve's shift in guidance last week and what a near-term Taper means for risk takers. Yet, the unwinding of QE-based speculative positions has not fully escalated into a wholesale deleveraging of anything and everything deemed 'risky'. While the overbought S&P 500 can continue to retreat from record highs without the auspices of panic, the greenback may need that extreme to keep its pre-established bull run moving into new territory. Otherwise, stabilization can expose short-term corrections from pairs like EURUSD and AUDJPY. But where do we look for a dollar correction and/or an intense risk aversion move: USDJPY. We discuss this and more in today's video.
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.