Global equity markets have just about managed to hold onto gains, after initially moving strongly higher, and then heavily reversing. The dollar has found buyers in-line with S&P futures moving lower; with the moves into long-dollar positions creating plenty of volatility on the way. It may be that the market is waiting now for the reaction to U.S. Building Permit, and unemployment claim numbers at 08:30 EDT before making the next move.
The initial gains that the major pairs made on the dollar overnight have been retraced, with most pairs back to the lows of Wednesday as the U.S. session begins. Same story, different day; it all now comes down to where Wall Street equities trade. Long dollars will come off Short equities, and vice versa. We will signal if the ranges start to break and hold, and are prepared to trade either side of the dollar.
Cable is holding a 4 hour linnear trendline that offers good support at 1.4570, euro has just broken its 4 hour support trendline at 1.3200, the yen does not get back into a long 4 hour trend until 100.00 is broken, and aussie is holding support right at the 4 hour trendline at 7190. Swissy is moving towards the 4 hour resistance area at 1.1530, whilst cad is in a 4 hour short mode with few restrictions it seems at the moment.