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The Monday trading session held support well, and offered the chance for a foundation to be placed on the major pairs that may be tough to now break, unless that is global equity markets drop lower overnight. A steady equity drop that took off the excess froth that had built up in Asian and European trade allowed traders to square positions and prepare for a big week of U.S. based economics. Market-wide volume is light, with sentiment and order flows printing low momentum reads as well.
The divergence between price action and trader sentiment has made for a lot of wheel spinning in the forex market place, and there is a distinct lack of block orders at the break-out points right now. Without institutional yard orders the previous session highs and lows will remain the intra-day trader's target to get banked and finished.
The 4 hour momentum chart reads are mainly showing a neutral mid-day stance, and most 4 hour trends are short-dollar outlooks. The overnight Asian session may allow one more drop in equity, and/or commodity trade, and that may be the time that short-dollar orders will hit hard enough to draw in volume, and to create momentum to then break the tight ranges that have been set in July trade.
Equity and commodity reads have come off overbought in the near-term, and they will now signal whether the next round of Usd selling can be achieved, by them now slowly making their way back higher. Commodity markets are still mixed, and still showing a divergence between futures price valuations (higher), and fundamental supply/demand forecasts (lower).