Forex Strategy Video: Now is it Time to Go Long S&P 500, EURUSD? No
• A 'risk on' theme is the higher probability trend after five years, but its potential is sparse
• Between a fading confidence in the prevailing trend and a persistent drive, short-term setups are best
Expect breakouts? Use the DailyFX Breakout 2 strategy to signal or confirm setups!
After a few weeks of congestion and indecision, the S&P 500 finally mustered enough speculative backing to overtake 1,850 with confidence. The problem was never the break, however, it was the follow through. New highs may be novel for 2014, but they are hardly remarkable for progress. The backdrop for investor appetite is just as stretched as price itself, and the potential (severity rather than likelihood) of a corrective move grows ever more extreme. How should a trader approach this situation where a trend is in place, but its progress is questioned every step of the way? Can medium-to-long term setups - whether with the trend or against it - offer good opportunity? What does this mean for other benchmarks (EURUSD, USDJPY, yields, global equities, etc.) within its pull? We discuss this in the weekend Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.