Trading Video: Break or Range Trade for US Dollar and Stocks?
• Another opportunity to turn the USDollar - this time on the back of February CPI data - was passed over
• Euro's next leg may be decided by Greece and perhaps faster than official timelines suggest
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The markets squandered another opportunity to make the difficult technical moves for the Dollar and S&P 500. The USDollar would not take the provocative step to break from its eight-month rising trend channel and the benchmark equity index retreated from its drive towards record highs. It is difficult to both reverse a popular speculative move and extend a mature trend respectively. It requires greater motivation and conviction. Neither the hawkish remarks from key Fed officials nor the persistently depressed CPI reading proved worthy of a refreshed trend. If we revert to the path of least resistance, both are poised to return to their respective ranges. Meanwhile, Greece's liquidity clock may be winding down faster than many are prepared for and the Pound's slip after the UK CPI reading may not signal the break that some crosses (GBPCAD and GBPAUD) seem to be flashing. We look at these trends and developments 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.