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After the stair step higher, and elevator down, in U.S. trade in reaction to the U.S. Consumer Confidence numbers (can you believe that reaction from a survey that picks up 0.001% of the population), that sent equity markets sprawling, and oil and gold lower, we now have a period in Asian trade to test support and get ready for the next round of releases.
The Usd got stronger in three 30 minute periods of trade from 10:00 EDT, and then just fell asleep for the rest of the session. That does now leave global equity markets looking for direction, and also looking for a continuation of greenback buying.
There was a pivotal period of trade on Tuesday that was unable to break the major pair 4 hour resistance point against the dollar, and we need to know now whether we are set to move lower and test the support channels, some 400 pips away on most pairs, or whether we consolidate and look for another attempt at breaking the resistance.
The half year has ended, and the second quarter will soon be forgotten as earnings season gets underway, and markets search out fair value on the dollar. Wednesday may bring the answer to Usd strength or weakness; the calendar is loaded with releases on Wednesday; most of which will be hard pushed not to generate a reaction. The Japanese Tankan gets things underway at 19:50 EDT. We will update as Asian markets get underway with momentum.