Trading Video: EURUSD Breakout Likely, But Don't Get Tunnel Vision
- A highly anticipated ECB rate decision is likely to generate volatility and breakout from EURUSD
- Changing rate expectations may lead to substantial change in Euro pairs, but can it stir risk trends?
- It is important to also look beyond ECB volatility and keep in mind NFPs and broader market activity
Click here to see my strategy video on what to expect and how to trade the ECB rate decision.
Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups.
The outlook for imminent EURUSD volatility is the highest we have seen in two years. To traders this means the market is preparing for a breakout on the upcoming rate decision. Given the expected upgrade in accommodation from the central bank, a drive from the pair's 85 pip range is highly likely. However, a swell in activity is just one step in the right direction. Will this event risk lead to a more prominent EURUSD trend? Can it leverage a lasting drive for the broader Euro crosses? Could it even stir deeper interests in risk trends? Looking beyond our volatility withdrawal, there is other event risk, immediate technical opportunities and established market conditions that are critical for our trading going forward. We discuss all of this in today's Trading Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.