www.TheLFB-Forex.com A Forex Trader Portal
Taking a good look at the major pair charts for this week; choppy, overlapping, volatile, that have increasing speculative interest and volume. All-in-all the perfect swing point. When we see this amount of cause and effect it indicates one thing; consolidation ahead of a major move.
Once again global equity markets moving lower, stock futures numbers in the red, and yet oil and gold are going higher, backing the major pairs that are holding steady against the dollar.
History tells us that when global equities are in the red, the dollar gets bought; but not at the moment, said TheLFB Trade Team members. We have signals technically that the major pairs are ready to break hard against the dollar, all that will be needed is a series of positive equity trade regionally; and looking at things right now, it may not even take that. It really feels as though the links are getting challenged, and that the majors may make their break anyway.
It is harder to signal moves when the fundamental and technical reads are skewed, it does not happen that often that the two get out of line, but in the same circumstances previously we know that the dollar would be dominant right now, and that is far from the case right now.
We are looking to gauge reaction from the German Dax futures market open, it looks to be that a negative start is on the way, and if so the Used should get stronger. But, looking at the charts right now, the major pairs look set to go long against the dollar, outside of the ECG chart look that they all have right now, they said.
There is no rush, this will last for weeks, and we are looking to catch a large chunk of the middle of the move, and not to try to time the bottom and the top. If you buy the dollar at the moment, use smaller lots, and tighter targets; today may not turn out to be the day it all breaks, but just in case, make sure to be all locked up with profit booked.
The regional 02:00 EDT, 07:00 EDT and 20:00 EDT market opens and reversals are going to be key times to look for momentum, and ideally it seems that long equity markets at those times may send the dollar reeling.
Weak equity trade going forward will likely contain forex movement either way, but we are getting signals that the major pairs may just break anyway.