Strategy Video: EURUSD, GBPUSD, USDJPY - Path of Least Resistance
• All else being equal, markets will choose range over breakout, trend over reversal
• Breakouts and reversals are counter moves that require sparks or motivation to facilitate
What is more likely: forging a major breakout or seeing a correction at a range boundary? Markets will follow the path of least resistance - technically and fundamentally - unless there is a catalyst with enough influence to override the status quo. For price action, ranges and established trends are clear indications of the market's next moves. Fundamental preferences are established in dominant themes and known event risk. So what is the path of least resistance for EURUSD, GBPUSD, Yen crosses and the Australian dollar? We discuss the concept and current bearings for many of the major currencies in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.