Trading Video: EURUSD, GBPUSD or USDJPY Trend-worthy?
• Low volatility and weak fundamental influence dampen trend development and defang major breakouts
• EURUSD may be one of the best positioned majors as ECB policy offers an active compliment to dormant risk
• The most prominent volatility risk/opportunity is the British pound as the BoE talks policy above 1.7000
Watch the Strategy Video on the timing and conditions for a return in volatility.
Want to see real volume on the FX market? Sign up for our limited release of the new Real Volume and Transaction Volume indicators!
Great technical setups and high profile fundamental developments defer to general market conditions. Low volatility and low participation environment are promoting range trading and short-term breakout trading rather than large trend or wide swing trades. Under these circumstances, it is just as important to choose the proper strategy as it is to select the best individual setup. One pairs that stands out for its medium-term potential is EURUSD. Whether volatility pick up or the status quo focuses on yield forecasts, there are strong bearish hooks here. If we want volatility, the British pound is the top of the list with a possible monetary policy change ahead. And, what about these incredibly tight Yen cross ranges? We discuss all of this in the weekend 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.