Forex: EURUSD Breakout Struggles for Drive, Yen Watches BoJ
• Whether bullish or bearish, risk on or risk off; meaningful trends require drive
• Ahead, updates on monetary policy expectations for Japan, the EZ, UK and US will drive FX
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With EURUSD clearing a multi-year trendline and AUDUSD completing a inverse head-and-shoulders breakout last week, we should have been open season on dollar selling to start this week. Instead, we are plagued by the same indecision on the bearish dollar break as the bullish US equities push. Whether we are talking technical moves, risk trends, monetary policy or any other driver; we still need to make the jump from initial thrust to lasting trend. As we wait for either risk appetite or dollar to cave - one will eventually give to the benefit of the other other - there are more pressing concerns. Monetary policy is at the top of the list to start the week with speculation surrounding BoJ stimulus, ECB balance sheet declines, BoE hike potential and Fed Taper talk all actively guiding our markets. We discuss the state of the markets and its active corners 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.