Forex: Dollar Destined for Breakout Next Week, But Trend?
• A seasonal blanket on volatility and complacency in trend is a hefty headwind to trade development
• In the week ahead, a sizable risk trend is less likely than a USDollar breakout
Sign up for DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, technical setups and much more!
Not only did risk trends not tumble on a strong US employment showing last week as Taper fears grew corporeal, but the USDollar wouldn't even break from a 12-day, 70-point range. There were plenty of key fundamental themes stirred this past week and a dense round of event risk ahead, but catalysts only ignite dry powder. With only two full trading weeks left to the year and a disturbing comfort in long-standing complacency, it is growing increasingly difficult to mount serious market-wide trends. That said, the data is still more than enough for bouts of volatility, and there are more than a few trade opportunities on this scale. We discuss the market conditions ahead and the trade opportunities to look heading into next week in the weekned Trading Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.