www.TheLFB-Forex.com A Forex Trader Portal
Overbought Alert: On the 4 hour momentum and trend analysis we have a very strange read; mixed trends throughout, but all reading Overbought. The forex major pairs, oil, gold, and global equity futures are all Overbought at the same time. That is a very strange thing to happen, and just shows how mixed up the regional markets are right now. It could lead to a period of consolidation ahead of further price moves, because some steam needs to come off the global market compmonents. Take care taking anything right now.
Things are till showing a strange picture of no trend, maxed out momentum, and a lack of follow through. It all equals a time that we have to take great care in what we trade, and more importantly, the time we trade it. Look to the momentum of the regional markets opening and closing.
We are starting to see a Usd ceiling getting put in place, but as yet still have all the majors in a trading range. If this dollar selling starts to build, we can look to the increasing market-wide participation as a signal that trade desks are being dragged into the arena, and that may just be enough to move the dollar index lower, regardless of equity market moves.
We saw on Monday an inability for the market to sell the major currencies lower, even in the face of fierce initial selling of stocks and oil.