Trading Video: GBPUSD Holds While USDJPY Risks Following AUDUSD Into Break
• As risk meanders and volatility measures scrap the floor, some unexpected moves are developing
• GBPUSD failed to leverage a pickup in inflation into a meaningful trend extension
• Meanwhile, AUDUSD and other Aussie dollar crosses posted critical technical breaks on modest event risk
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.
Volatility readings are still plunging extreme lows, but trading opportunities are still popping up in the FX market. Scheduled inflation statistics from the UK represented a distinct volatility threat for GBPUSD and the other sterling-based crosses, but an uptick that may have reinforced hawkish expectations and the bull trend failed to rally conviction. Meanwhile, commentary from the RBA pushed the AUDUSD and other Aussie crosses into a sharp correction. Ahead, the yen crosses may be next - armed with bigger trend potential whether we follow monetary policy or risk fundamental lines. We talk technical breaks and fundamental catalysts 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.