Forex: Setting the Pace for the Dollar Advance
• EURUSD ended the past week with a multi-month trendline and move to 7-week lows
• The lull before January 29 FOMC rate decision puts momentum at odds with persistent ECB and BoE views
• Attractive technical patterns should be checked for fundamentals and market conditions
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The FX market made remarkable technical moves through the end of this past week, but will these nascent breaks develop into viable trends moving forward? Ending this past week with a high profile EURUSD technical break, a sharp sterling rally and divergent yen cross performance generates numerous trading scenarios for us to pick up on when liquidity returns Monday. Yet, a market holiday Monday, contradictory monetary policy views (Euro and pound), and the countdown to the next FOMC rate decision present a trading disparity. We take a look at the trade potential of the majors, crosses and capital markets moving forward in the Weekend Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.