Global equity trade has turned negative, something initiated by the financial sector down-grades that came recently, and not helped by low level vacation volume that is in the global market place right now. If the selling of stocks continues we are likely to see a period of trade that moves into a sideways channel, and forces the buying of tests of support, and the selling of tests of resistance. Without equity buying the dollar will hold ground, and the major pairs will spin their wheels.

We have seen that there is a limit as to how much the market is willing to push dollar values up to, and that the greenback is getting bought out of a requirement to hedge negative stock trade, rather than desire, trade team said. We will closely monitor the Asian market moves, and update as we see anything that looks sustainable they said.