Video: Dollar Weighs Heavily on Floor of its Eighth Month Bull Trend
• The Dollar moved back to toe the proverbial technical cliff to start this week
• Many majors have already cleared tech levels, but a dense round of stops/orders likely lie further out
• Aside from the Dollar; FX traders need to keep a wary eye on 'risk', the Euro and Pound in particular
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While some of the majors - EURUSD, AUDUSD, USDJPY - have already slipped beyond short-term Dollar-support levels; the key hurdle still stands. We have moved up once again to the floor of the Dow Jones FXCM Dollar's (ticker = USDollar) eight-month rising trend channel. If the EURUSD's experience breaking 1.0650 were any indication, the speculative draw and impact may prove extraordinary. Meanwhile, the S&P 500 is losing conviction as it closes in on record highs, taking some of the wind out of buy-and-hold crowds' sails. Between the Dollar run, risk's trends wavering and scheduled event risk (like UK CPI, ongoing Greek discussions or Asia and European PMI readings); there is plenty to keep FX volatility rising. We run down the market's big-picture conditions and look for definable 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.