Forex: EURUSD Looks for Breakout on ECB Decision, But Beware...
• EURUSD may seem the ideal candidate for a breakout today with the ECB rate decision on hand
• As market moving as Thursday's event risk can be, Friday's NFPs can disrupt trend development
• Trades with traditional 'risk trend' or dollar exposure must account for the Taper speculation
EURUSD looks ripe for a breakout with a tight 80 pip range facing today's heavily-speculated ECB rate decision. Yet, FX traders must be careful of their dollar and 'risk'-based trade setups. As influential as the upcoming Euro-area policy meeting can be, the market implications of the Friday US NFP scenarios are materially more foreboding. In today's Trading Video we discuss the potential in the ECB and BoE rate decisions, the distraction from the US employment report, the opportunity in building fundamental divergences and the trade opportunities all of this represents.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.