Trading Video: EURUSD Breaks its Wedge as the S&P 500 Tumble Continues
• US equities are now in a four-day bear trend, but we have yet to transition to outright deleveraging
• The Dollar broke from tight congestion in favor of its medium-term trend, but momentum is still lacking
• With less than 24 hours left in the week, can we feed momentum or lever a meaningful break?
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On paper, this past session's market developments look remarkable. For the S&P 500 and US equities, the fourth consecutive daily decline represents the most strident bear trend we've seen in 10 weeks. Meanwhile, the Dollar-based majors were forced to break - in favor of the medium-term trend - from congestion patterns that had run out of room. Yet, putting both developments into context, there is not enough in either move to bolster confidence of a more remarkable trend emerging from these sparks. To this point, the S&P 500 has suffered within the boundaries of its persistent two-year bull trend channel. As for the Greenback, the move is one of necessity rather than conviction which considerably deflates its potential. Will motivation follow soon after the technical cues or will the drive falter out of the gate? We discuss the market's standings and its catalysts 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.