Video: Don’t Set Up for the Dollar, Euro and Equity Breaks Just Yet
• Breakout and trend trades should be placed when market conditions support volatility and momentum
• Post-NFPs and pre-Greek Referendum, a liquidity drain through Friday makes clean breaks highly unlikely
• Dollar pairs, Euro crosses and global equities all look well positioned for big moves; but not yet
Find out what scheduled event risk can threaten your trades or trigger volatility with the DailyFX Economic Calendar.
Patience is indeed a virtue, but for the trader it is more practical as it keeps us from placing trades that don't make the grade. There are great technical patterns developing for Dollar-based majors (EURUSD, USDJPY, AUDUSD), Euro crosses (EURGBP, EURCAD) and global equities; but these high-profile technical setups require motivation to trigger and further develop. And, it is very unlikely that we resolve these major patterns in a session that comes after NFPs, before Greece's referendum on whether to accept creditor proposals and during a US market holiday that will leave a large speculative hole in the trading ranks. Waiting for the market's to fill back out and reload the docket with catalysts or perhaps looking for more reasonable range opportunities is a better approach for the impatient trader. We discuss market opportunities against market conditions 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.