News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Forex Strategy Video: Trading the Dollar on Deficit Crisis, Taper, Risk

Forex Strategy Video: Trading the Dollar on Deficit Crisis, Taper, Risk

John Kicklighter, Chief Strategist

Talking Points:

• There are three major fundamental themes that the US is following: debt crisis, taper and risk trends

• The government shutdown this week seems to have defused debt disruption fears and an October Taper

• Without a swell in global risk aversion, deflating of the other two themes can force a dollar breakdown

Sign up for John’s email distribution list, here.

The USDollar is on the verge of a significant technical breakdown as the two key catalyst have seen their fundamental leverage diminish. Both fear of the debt crisis and Taper have faded these past few weeks, and with it the greenback's strength. As the anti-Taper and safe haven premium behind the currency collapses, the dollar is at clear risk of pitching into a serious bear trend. For bulls, the hold out hope is for a material risk aversion wave developing in the global capital markets and restoring the currency's buoyancy. In today's Forex Strategy Video, we discuss what fundamental themes the dollar is following along with trade opportunities for the prevailing bearish (USDJPY) and alternative bullish (EURUSD) scenarios.

Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.