Trading Video: Traders Chomping at the Bit for Dollar, Equities Correction

By DailyFx | August 28, 2014 AAA

DailyFX.com -

Talking Points:

• Both the S&P 500 and US Dollar - market benchmarks - charts look winded and exposed

• Reversal or continuation, speculative participation is rapidly draining into a holiday weekend

• EURUSD, GBPUSD, USDJPY and many other opportunities may be better to hold off until next week

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.

The charts are looking seductive for both those groping for reversal and banking on continuation, but participation is going to be an issue. As impressive as market activity has been between the S&P 500's impressive bull leg and EURUSD's consistently decline, the seasonal effect of the Labor Day holiday drain as an end to the 'summer doldrums' presents too distinct a burden when volume and volatility levels are already floundering at record lows. Does that mean trading opportunities will evaporate or unexecutable in the interim? No. But, we should be fully aware of what to expect. We lay out these market conditions and opportunities in today's Trading Video.

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

comments powered by Disqus
Related Forex Analysis
  1. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. Dollar and Market Confidence Ride on FOMC Decision
    Forex News

    Dollar and Market Confidence Ride on FOMC Decision

  3. Gold Losses to Accelerate on Less Dovish FOMC- Support Break Eyes 1206
    Forex News

    Gold Losses to Accelerate on Less Dovish FOMC- Support Break Eyes 1206

  4. AUD Faces A Potential “Breakout” On US Heavy Event Risk
    Forex News

    AUD Faces A Potential “Breakout” On US Heavy Event Risk

  5. New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC
    Forex News

    New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC

Trading Center