Trading Video: Growing More Difficult to Reverse S&P 500, Break EURUSD
• A systemic drop in volatility is combining with the seasonal Summer activity slump to anchor the market
• Trade selection much be made with a mind to what moves and pairs can reasonably generate heat
EURUSD is working its way into a necessary breakout and GBPUSD has absorbed event risk that can further enforce a GBPUSD reversal on rate hopes. Yet, these moves are unlikely to play out through high-profile technical moves or even key event risk through the near future. Market Conditions - the third analysis type - is closing the market down with the hope of a reversal from extreme complacency and low volatility dampened by holiday trading conditions looming next week. Setting probabilities for good trades is even more important as 'happy accidents' are less likely to occur. We evaluate what setups look good given current market conditions and which are tempting traps 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.