This week starts with very little of note on the economic calendar, the importance of which is that the currency markets seem desperate to find a momentum and driver to break the Usd one way or the other. Right now the daily and four hour charts on the majors are showing a separation in the way that they seem to want to move against the dollar. All of them however are still showing that the market is comfortable holding long-dollar positions on a daily basis.
Cad, cable and aussie have been bullish in the near-term against the dollar, with euro and swissy losing ground to the dollar, along with the Japanese yen said TheLFB-Forex.com Trade Team Members. It sets up a technical cross-road on which way the dollar index will go, because history tells us that the major pairs rarely stay separated in their dollar direction for too long, with the likely instigator of the next move coming off the economic calendar, or at this time of year from earnings season. One way or another next major move is likely to be news related.
The red flag calendar releases are spread throughout the week, but earnings season has some major players reporting, and as such it will be more important than ever to look to get involved in trades initially around the regional global market futures trade momentum at 19:00 EDT, 02:00 EDT, and 07:00 EDT.
The price points, sentiment, and momentum in forex pairs will be covered in the upcoming reports that will follow the Asian open at 17:00 EDT for our members, but ahead of those times it may be a coin flick as to which way things run. We are looking to get any gaps out of the way before then plotting a course to trade on the dollar. The signals this week will cover one long, and one short dollar trade, as each session opens, using the market mechanics at that time to determine which ones to move with. We are looking to set some straddle plays, and are looking to see whether cable and cad lead things higher, or reverse at major price points they said.
We are looking forward to a strong week of trade, and to add to the very impressive period of trade that the signal alerts have gone through.