Forex: EURUSD Ready for Breakout as US, Italy Government Troubles Heat Up
• Budget debate in Congress is coming down to the wire with risk trends in the crosshairs
• Event risk like Italy's government fracture, Japan's tax hike and the RBA decision offer further sparks
• Markets are at risk of heavy volatility, but aligning event risk, themes and technical breaks is key
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The threats to a stable market are already beginning to materialize, but the scale of risk aversion remains constrained. The US budget standoff, Italy's fractured government and Japan's impending tax hike are upon us; but the masses do not yet see the full scope of how these uncertainties can impact their trades. There are opportunities positive and negative outcomes from these events; but the best trades will find multiple facets of fundamental support, signs of developing momentum and technical cues. In today's video, we update on the key market themes and highlight the pairs best suited for the different outcomes to this heavy event risk.
Find out what event risk can threaten the trade setups discussed in today's video with the DailyFX Economic Calendar.
Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.