Talking Points:

• A liquidity drain has exacerbated low volatility levels, but activity is extreme even on a longer term

• Market conditions dictate that a rebound in volatility is very likely in the coming weeks

• Fundamentals behind the Euro in the meantime suggest that move is more likely to be bearish EURUSD

Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.

We focused on the medium-term trade potential for EURUSD in yesterday's Strategy video, yet this pair is just one of a number of assets setting up for a big move. Seeing a confluence of technical, fundamental and market condition alignments amongst many different benchmarks signals something substantial. Rather than discrete and happenstance opportunities, we are seeing the evidence of an underlying and systemic change. Given the time and weight of this scenario, there is plenty of trade potential. However, we need to approach it with the proper time frame and scope it represents. We discuss this medium-term opportunity and a number of its trade options in the weekend Strategy Video.

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