Talking Points:
• The FOMC rate decision due Wednesday is the type of event risk that can move the entire financial system
• Despite its strong run and the imminent event risk, the Dollar ended the past week at an 11-year high
• Though ECB, BoJ and PBoC easing may offset a Fed shift notionally, it may not hold back risk aversion
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
Is the S&P 500's exceptional bull trend closer to its beginning or its end? How about the Dollar or EURUSD? Traditional analysis - technical, fundamental, market conditions - helps us to determine where the market is in its natural cycle and where it is likely to go. Yet, that assessment requires context. Understanding the general stages of the various phases is important for evaluating whether trades are worth while, what to expect for return and holding period, conviction for reasonable sizing, and other crucial elements to our assessment of the markets as well as individual trades. In this weekend Strategy Video, we look at a basic cycle for trends, themes and even individual trades using the S&P 500, USDollar and EURUSD.
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