Video: EURUSD Heading Towards a Breakout with GDP Numbers Ahead
• EURUSD is positioning fundamentally and technical for a near-term breakout
• A terminal wedge can be catalyzed by any volatility that results from the upcoming Eurozone GDP release
• Beyond this high profile scheduled event risk, it is important to monitor deeper fundamental currents
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EURUSD has consolidated for much of this week, but the pair may soon be shaken awake...perhaps violently. When technicals and fundamentals converge, market activity tends to follow. For this benchmark currency pair, a terminal wedge stands out prominently against the steady six-month bear trend from 1.4000. A break - and some degree of follow through - can be found from a key round of event risk scheduled through the end of the week. The Euro-area 3Q GDP readings are the type of high-level data that are known for stirring the markets. However, we should also keep in mind the G-20 meeting scheduled over the weekend against a backdrop of souring economic and financial forecasts. General themes such as monetary policy and risk trends are just as much on the chopping block even if they don't have a blatant technical pattern and fundamental trigger as EURUSD. We discuss this high-profile pair and bigger trends 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.