Trading Video: EURUSD Breakout Has Problems, Pound Trades in Focus Again
• EURUSD managed to break a short-term range, but follow through will struggle with the chosen direction
• To overcome quiet market conditions, we need technical breaks that leverage fundamental trends
Do you want to see FX market volume and incorporate it into your trading strategy? Sign up for the FXCM Real Volume and Transaction Volume Indicators.
A short-term breakout - like that won by EURUSD this past session - fits the kind of market conditions we have been dealt with as of late...unless it is a break against the prevailing fundamental and technical trends. The benchmark currency pair managed to clear a 6-week trendline around 1.3625 to resolve a terminal range, but the difference between US and Eurozone monetary policy bearings present a serious headwind to generating follow through. This same technical versus fundamental mentality has sapped the drive out of the S&P 500's attempt at a reversal and GBPUSD's break above 1.7000. In today's Trading Video, we look at the key event risk ahead and work out the best scenarios alongside the technical picture for the best trade opportunities.
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.