Forex Strategy Video: Why Fundamentals Offer a Better GBPUSD Setup than USDJPY
• Testing a range or technical boundary does not give us a strong sense of direction or momentum
• When well-timed fundamental sparks meet technical tension, we are offered a more complete trade setup
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There have been plenty of tempting technical setups across the FX and capital markets over the past weeks and months. But why do some of these setups fizzle while others rocket into breakouts or reversals? In today's Strategy Video we discuss the importance of fundamental sparks hitting the wires when technical tension is drawing the market's focus. The pattern provides the levels and the right event risk can unify the market's drive towards one objective to generate the big breakout or new trend. We highlight the difference a fundamental spark can make between pairs like USDJPY, NZDUSD and GBPUSD.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.