• There are a number of high-potential technical setups that seem ready to play out next week
• With the Fed rate decision due the following week, trades must be thought out carefully
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Volatility followed the August nonfarm payrolls (NFP) report, but not the trend and market-wide consistency in theme traders wanted. So, what do we do about the high-potential trade setups seen on pairs like AUDUSD? There are more than a few, acute technical setups in various states of playing out. However, whether we are looking for momentum, volatility or reversals; successful trades will depend on the backdrop for market conditions. Strong risk trends and market-wide moves for key currencies is more likely to be dampened by the market's anxiety surrounding the Fed rate decision due the following week. In this weekend video, we discuss how to gauge potential and trade these otherwise tempting setups.
Find all the high-level event risk that threatens to generate volatility for the FX markets next week on the DailyFX Economic Calendar.