Talking Points:

• Breakouts are a favored trading opportunity for the speculative crowd

• Beyond a basic technical move, conviction is found in reinforcing fundamentals and market conditions

• The approach to trading breakouts can range between 'Aggressive' and 'Conservative'

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In a decisive move, the S&P 500 led US equities to a high profile bearish break. The risk aversion implications seem clear, but the fear is not yet spanning all assets and regions. Hitting a level of conviction that forces the speculative ranks to deleverage across all positions deemed 'risky' is critical for the US dollar's bearings as the benchmark currency is simultaneously dealing with a localized fiscal crisis. In today's video, we discuss the levels of risk trends; and how it presents different trading options in scenarios of sustained but moderate risk aversion (yen crosses), full scale panic (US dollar) and even a sentiment rebound (USDJPY).

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