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
What kind of Trading best suits you? Technical or Fundamental? Short-term or Long-term? Take our Trader Survey and find out.
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.
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.