www.TheLFB-Forex.com A Forex Trader Portal Jul 05 09 12:10 EDT
For those traders who missed last week's action, or have forgotten what went on, here is a recap:
U.S. Non-farm payroll numbers were worse than the analysts had expected (it was hard to see how it could have been a positive employment read, and how badly they got that wrong, but that is another story), global equity markets traded sideways, and looked imbalanced in regard to orders flows that seemed to keep volume levels low.
Oil and gold traded lower overall, in-line with the near-term buying of the Usd as the hedge against falling stock values. Interest rates fell, in-line with the buying of Treasury notes, and that left the markets at overbought momentum reads against the dollar, and at a swing point in regard trend.
Weekly charts show good support for the major pairs, and near-term reads confirm that if the dollar is to make the next leg higher in strength, it will require a near-term collapse in equity and oil market trade.
TheLFB Global Market Review area shows an outlook that is ompletely mixed. Therefore a50% reduction in lot size imay be required in early trade this week, and tight targets that get banked may stay as a key part of market activity at the moment.
Global equity markets are looking weak, with the trend reads are at a swing point that will require the momentum to soon reverse course from oversold if they are not all to go short. The equity bear has already visited some regions, and that is a Usd positive.
Oil, gold, and euro have mixed reads, but are showing overall weakness. Right now we have a very mixed market that is completely undecided on Usd direction and strength of potential moves.
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