Trading Video: Remember Activity When Gauging EURUSD, S&P 500 Breakouts

By DailyFx | Updated August 27, 2014 AAA

DailyFX.com -

Talking Points:

• The prevailing S&P 500 and Dollar bull trends were still in place this past session

• Yet, momentum is flagging and technicals look increasingly like the initial stages of breakouts

• Breaking into reversal or continuation though depends on participation - something fading quickly

Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.

Both the US Dollar and S&P 500 bull trends are leveling off. After the light fundamental support and given the shape of technicals, many speculators are tempted to call impending reversals while others see consolidation before a break to continuation. As convincing as the fundamental and technical pictures are, though, it is important to remember a factor that can easily override other influences: participation. Already tepid activity and volume levels in the FX and capital markets will soon crash into the seasonal drain of the US Labor Day holiday period. What will this mix of technicals, fundamentals and market conditions bring for the financial system? Can EURUSD overcome the fog with key event risk and an extended run? We discuss this in today's Trading Video.

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

Related Forex Analysis
  1. Gold Rebound Vulnerable Sub $1207- Weekly Opening Range in Focus
    Forex News

    Gold Rebound Vulnerable Sub $1207- Weekly Opening Range in Focus

  2. EUR/USD recovering lost ground - FXStreet
    Forex News

    EUR/USD recovering lost ground - FXStreet

  3. UK Autumn Statement 2014 Preview - Fantasy Fiscal Policy
    Forex News

    UK Autumn Statement 2014 Preview - Fantasy Fiscal Policy

  4. The GBP/USD collides with the MA-200 hours at 1.5705
    Forex News

    The GBP/USD collides with the MA-200 hours at 1.5705

  5. The Fed’s checklist - Rabobank
    Forex News

    The Fed’s checklist - Rabobank

Trading Center