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The Japanese Nikkei 225 Index has dropped lower in early trade by 0.3%, and has pushed the Usd/Jpy, and yen cross pairs, lower as a result. Commodity futures trade had moved lower to pick up bids around 950 on gold, and 68.00 on oil. Order flows are very weak, and momentum will have to build as the Hang Seng markets get underway if the selling is to be able to break near-term support, and hold.
The market has locked Usd values into a short range, and are looking to buy the support tests, in a repeat of the pattern that has held for the last two months. The summer motto has been; sell resistance, buy the support. There are two pairs that look bullish in the near-term, and they are aussie and euro, but both will require a bounce, again, as European equity trade gets going if they are to break the outer ranges of the 4 hour charts. The way to navigate the long side of these pairs will be to contrarian trade the tests of 0.8150 and 1.4150 going long, if equities find buyers at that time.