Forex: EUR/USD, USD/JPY Bear Waves Need an S&P 500 Collapse
EURUSD marked a meaningful technical break this past session having slipped below a nine-month trendline carrying through to 1.2800. Yet, a breakdown does not guarantee follow through. And, given the move that the USDollar has forged over the past few weeks; further escalation of aggressive short-term dollar drives for pairs like EURUSD, GBPUSD and AUDUSD or forcing tantalizing reversals for USDJPY and other yen crosses needs a kinetic development. Committed risk aversion is that spark. However, with the S&P 500 - a benchmark for risk appetite - matching its longest rally in nearly four years, that scenario is not easily accomplished. We discuss the technical and fundamental trade considerations behind the EURUSD and many other pairs in today's video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.