Trading Video: Risk Trends Ease, EURUSD Pressure Builds
• The S&P 500 and other risk barometers edged back, but this is still far from a true reversal
• EURUSD put in for a short-term break and a second - more substantial one - may soon follow up
• Evidence that trend development is very difficult to engage, GBPUSD's 1.7000-Break falls apart
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US equities slipped and the VIX moved back above 12. To many market participants desperate for more substantive and durable trends, this looks like a long-awaited systemic reversal. However, both the reach on risk positions and the extent of complacency are far too substantial to be decided on a single day's correction. That means appealing setups like the S&P 500's trend, a terminal USDJPY wedge and GBPUSD drop back below 1.7000 are not certain bear trends in wait. Market conditions are still a critical aspect of trade identification, which limits some pairs and markets while reinforcing the potential in others. We look at market conditions and trade opportunities 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.