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It has taken 15 hours of trade, but eventually the major pairs got to test the previous session highs or lows against the Usd, and have found support that has temporarily halted the dollar buying. Oil, gold, and equities have the bear market feel to them, and not to be doom and gloom, because these things can spin on a dime, are now setting the dollar index up for a major swing point challenge.
Trade Plan numbers were instigated overnight, and a few are close to now hitting. Some traders may have been waiting until the previous session highs and lows were hit before getting too involved in Friday trade, in light of this being one of the lowest volume days of trade that the global market has seen all year. But, more interestingly, it comes after a run of increasing volume all week; suddenly, out of nowhere, a void was created today that had no buyers.
Low volume is fine, so long as we are working with a trend, and are in the middle of a week; low volume in a mixed global market trend, and on the last trading session of the week, can be hit or miss if it is not very well planned, especially when still inside the previous session range. As we have seen, the inability of global markets to attract buyers has allowed the dollar to strengthen.
Now that we are at forex support and resistance points we will see the reaction to the Wall Street cash market open, and will get to see the Usd strength tested. Futures trade indicates a poor start for U.S. stocks, but as we have seen on so many occasions before, low volume Friday's are more than capable of sending things back to where they just came.
To move lower from here really will set up a move into bear territory that may require extremely solid earnings reports over the next six weeks to get out of.