Forex: EURUSD, EURJPY and S&P 500 Locked and Loaded?
• The temptation to position for reversal, breakouts and large swings is building
• Yet, where technicals are tempting, fundamentals timing and market conditions give reason for pause
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There tally on breakout, reversal and trend potential charts has grown sharply. Yet, that head-and-shoulders S&P 500 pattern and heavy EURUSD resistance are only one part of the trading equation. To transition from a knee-jerk technical move into a meaningful follow through trend, we need a key fundamental theme traders can fall behind and market participation to support it. We know December is the most distressed month for volume (participation) when looking at benchmarks like S&P 500. As for the fundamental fires, the risk and monetary policy themes are struggling for attention and don't have a conducive timing. We discuss the trade potential in these seductive charts in today's Trading Video.
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