Forex Strategy Video: Is it Time to Trade the Dollar Break?
- The Dow Jones FXCM Dollar Index broke the bullish trendline that has kept the market on pace for 2013
- Either a strong risk appetite move or anti-Taper theme carry the necessary influence to sink USD
- Yet, would investors take on risk or downplay the Taper ahead of next week's
FOMC decision? With the market antsy for a breakout that evolves into a meaningful trend, the USDollar's bearish break Monday is particularly appealing. The greenback tumbled across the board, but remarkable technical moves by GBPUSD and AUDUSD offer the most alluring setups. Yet, there is little trade potential in a break that produces no trend for follow through. With a key FOMC rate decision due a little more than a week from now, can the bears drive the benchmark currency down? Can we tap a meaningful appetite for risk build up or an effort to deleverage Taper speculation to undermine the dollar? We discuss these conditions and whether it is a good time to trade the GBPUSD and AUDUSD in today's Forex Strategy Video.
Sign up for John’s email distribution list, here.
Find out what event risk can threaten the trade setups discussed in today's video with the DailyFX Economic Calendar.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.