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Bear Market Waits. As the European markets close, the equity bear is forcing itself on the market and pushing stocks lower, and dropping oil and gold to early May swing points. The reaction in forex is seen in Usd buying, with the major pairs at very important swing point areas and so completely oversold right now that the next move may just run out of time to complete before reversing.
We need to bear in mind that earnings season starts tonight. Cash may be king right now; cash, or at least reduced lots. The dollar drivers are all in short mode, they are completely oversold, all at the same time, and that is a red flag reversal set-up.
The repeated pattern of Asian momentum, long or short, driving European direction that collapses as Wall Street markets awaken, is in play again. It is not allowing too much movement in currencies that can be trusted to hold for too long in regard to trend, and had focused attention on the near-tern time-frames.
The major pair momentum reads on the 4 hour charts remain oversold against the dollar, something that will get addressed over the coming sessions. Ground Hog Day; the repeated performance of the same action, that gets nowhere fast.