Trading Video: Choose Your Dollar View and Pair Wisely
• USDollar broke the technical backbone of its rising trend for the first time in nine months
• Risk trends are a similar mixed back from China mania to US hesitation
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The Dow Jones FXCM Dollar Index has made a tempting break. But there is reason to remain cautious on our Greenback commitments. A slip from the world's most liquid currency 'seems' long overdue after an aggressive run, but the commitment is uneven across the majors. Moreover, the fundamentals maintain long-term support for bulls and there were few high profile sparks to ignite short-term doubt and profit taking. Depending on timing and depth of retreat, there are opportunities for the bulls and bears. There is also event risk before the week closes to potential decide direction definitively. Meanwhile, sentiment is showing more severe divergence between a manic surge in Chinese shares to a now slow-to-follow S&P 500. We look at the sharp moves in Dollar and 'risk' alongside unburdened 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.