Forex: Market Conditions Favor USDJPY Range Over AUDUSD Breakout
• Activity levels are extremely low, but that doesn't indicate an imminent shift to trend and volatility
• In low activity conditions, breakout threats like AUDUSD are less appealing
• Should conditions change next week, there are plenty of trade options like GBPUSD
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A breakout alone does not make for a good trade. Yet pairs like AUDUSD, EURJPY and GBPUSD are carving out technical pairs that cry out for resolution. However, breaking these boundaries when the market is hesitant to throw in on a quick move can lead us to trades that quickly fall apart. In today's video, we look at a number of appealing technical setups and discuss the fundamentals and market conditions needed to turn a failed drive into a meaningful swing or momentum trade.
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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.