Forex Trading Video: EURUSD and GBPUSD Weigh Rate Forecasts for Momentum
• UK inflation data did little to quiet rate forecasts translating into unfulfilled pound breakouts
• Risk trends are similar groping for conviction as the S&P 500 and Yen crosses tighten their ranges
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
There is plenty of technically-leveraged opportunity in the markets from EURUSD to GBPJPY and S&P 500 amongst others. Yet, traders are waiting impatiently for the setups to evolve into breakout and momentum. The catalyst for this transition is proving difficult to kindle. For pairs like EURUSD and GBPUSD, the motivation comes from interest rate forecasts. The Euro was active with Draghi commentary, but the ECB's effort to talk down the currency has been met with mixed results. Meanwhile, the round of UK inflation data didn't deflate BoE rate hike hopes. Meanwhile, the S&P 500 carves out a pattern party head-and-shoulders and part wedge - both breakout bound. What will it take to turn up volume on market activity? We discuss the tempting technical setups and the elusive fundamental drivers 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.