Video: Looking for More Stable, Technical-Centric Pairs Like AUDUSD
• Tumultuous fundamental themes and volatility-inducing event risk makes for lower probability trades
• In avoiding areas of the market with the greatest threats, more stable options can be found
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The EURUSD, EURJPY and EURGBP face considerable risk for extreme volatility while enjoying limited capacity for projecting a consistent direction through the turmoil. Many traders seek out the high-volatility scenarios to provide trade setups. However, volatility with little clarity on the 'trigger', the potential for consistent direction and the extent of follow through can represent more risk than reward. Sometimes, the better path is to reduce our exposure to open-ended fundamental threats to focus on more straightforward catalysts or technicals. In today's Strategy Video, we discuss why EUR, GBP and JPY pairs may be better to avoid now while AUD, NZD, CAD and even USD could offer more acceptable opportunities.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.