Forex: What Majors are Good Dollar Breakout Candidates?
The USDollar is carving out a narrow range as the fundamental backdrop heats up. The logical conclusion of this mix is a breakout. Yet, between technical pressure and risk-based lean, the next meaningful move the greenback takes will likely side with the next fundamental drive. While the selloff in carry and yield markets seems to put US equities on deck for a dive and position the dollar for a rally, there is still a critical contingency that must be met before we the market-wide drive evolves. We are waiting for the upgrade from basic Taper concerns to full-scale risk deleveraging. This relationship is discussed again in today's video along with trade setups that fit risk aversion (yen crosses), a mild risk rebound (AUDUSD) and even sentiment neutral (AUDNZD).
Find out what event risk can threaten the trade setups discussed in today's video with the DailyFX Economic Calendar.
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.
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