Forex: EURUSD Breakout Potential Extreme, But Unlikely for Friday
• Risk trends trickled higher, but conviction is just as lacking as the previous drop
• EURUSD may soon be one of the best trading opportunities with technicals and fundamentals building
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The S&P 500's close above 1,850 this past session is about as convincing as the EURUSD's bearish drive below 1.3700 the day before. The move comes of necessity rather than conviction. Follow through for the more liquid market benchmarks (like EURUSD) are dependent on the same level of assurance that the underlying fundamental themes require to trend. Next week, the docket is laden with key event risk - NFPs, ECB decision, China's National People's Congress - but the final 24 hours of trading this week finds limited scope in its listings. A stand out is the combination of the European inflation and employment statistics, which is key fodder for the upcoming rate decision - which has many speculating on new stimulus. We look at the Euro pairs' short-term suitability as well as the larger trading potential for other pairs and markets going forward in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.