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.

You May Also Like

Related Forex Analysis
  1. Forex News

    Weekly Trading Forecast: How Far can the Dollar Go in 2014?

  2. Forex News

    Japanese Yen May Resume Recovery on Year-End Capital Flows

  3. Forex News

    GBP/USD Range in Focus Ahead of U.K. & U.S. 3Q GDP Reports

  4. Forex News

    US session recap: USD index and stocks rally for record highs

  5. Forex News

    Sterling between bullish dollar and bearish euro - BBH

Trading Center