News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Forex: What Does the Risk Backdrop Say About a AUDUSD Breakout?

Forex: What Does the Risk Backdrop Say About a AUDUSD Breakout?

John Kicklighter, Chief Strategist

Talking Points:

• Volatility - a stand in for sentiment - continues to slide into greater extremes

• There are plenty of trade options for a realized 'fear' swell but few triggers to instigate

• We look at AUDUSD and other pairs in context of the volatility backdrop

Sign up for John’s email distribution list, here.

AUDUSD has worked its way into a clear pennant formation. This technical pattern typically ends in with continuation, but volatility and the fundamentals they represent will have a say in its ultimate direction. For some currencies and markets (S&P 500, Australian dollar), low volatility is a key support as it further encourages investors to expose themselves for greater gains. For others (US dollar, yen, Treasuries), strength is found in the 'fear' assessed in a higher volatility backdrop. In today's video, we look at the prevailing trends - and the extremes they promote - in the context of trade setups on AUDUSD, yen crosses and other primed markets.

Download the consecutive bar indicator John used in today's video to measure the historical significance and over-extended level of the markets.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.