Talking Points:
• The 3Q UK GDP reading is due in the London session, opportune timing with GBPUSD threatening a break
• For the USDollar, a significant collection of support is likely to dampen trend development
• Pairs like USDJPY and AUDUSD may not offers the level of breakout risk as the likes of GBPUSD
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Heading into the final 24 hours of the trading week and with heavy-hitting event risk next week, major technical levels for the dollar and equities may hold. For the Dow Jones FXCM Dollar Index, a collection of support is seen around 10,365 while the S&P 500 is lurking menacingly at record highs. In turn, that may curb the AUDUSD's reversal ambitions and sabotage a USDJPY breakout. Yet, the pound may have a spark to overcome that anchor. The 3Q UK GDP release find GBPUSD in tight congestion, EURGBP setting up the foundation for a reversal and GBPAUD ready to tip the sterling back into a major fundamental trend. Continuation or reversal? Breakout or range? We discuss the scenarios in today's Trading Video.
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.
