Strategy Video: How to Trade a Dollar Break that May Lack for Momentum
• Having come to a make-or-break technical pattern, the Dollar followed its larger bull trend
• Yet, the subsequent EURUSD, GBPUSD and AUDUSD bearish moves still lack for momentum
• How can we establish positions when we are not fully confident in the market's circumstances?
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The Dollar essentially ran out of room on a narrowing range. What has resulted from this 'terminal' pattern was a technical breakout. However, even if we have cleared congestion and the move fits the medium-term trend, momentum is conspicuously absent. The nature of the market better suits a quickly paced and short-lived trade approach. Is this simply a market development that is better foregone? At what point does the opportunity look suitable enough to trade? We talk about confidence levels and position sizing with a mind to the Dollar's recent nudge higher in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.