Forex: A New EURUSD High Accompanies a Risk Bounce
• EURUSD closed at a fresh multi-year high, but a trend has yet to establish itself
• This week's risk stumble has leveled off yet volatility readings show how unbalanced conditions remain
• The RBNZ rate decision was a big event to kick off the day, but there is much more data ahead
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Traders held out little hope that the equity and yen tumble this week could escalate to a full-scale risk aversion trend. Indeed, risk trends did check higher with EURUSD reaching a little higher in its bulging channel. Yet, the imbalance for risk carries with it an anchor for the prevailing trends (bullish risk and even bullish EURSUD) and untapped potential for more prolific reversals. While we monitor sentiment tides, event risk is picking up into Thursday. The RBNZ rate decision kicks of a day with Chinese data, ECB updates and confirmation hearings for new potential Fed members. We discuss all of this 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.