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Market Wire Update: The major pairs are starting to move against the Usd, and will require positive equity market trade to follow through, and break the previous session highs. Right now global equity futures trade is backing off the highs of the overnight session. Japanese futures are 1% off their high, German futures gapped higher, but have already reversed that move by 0.5%, and S&P futures, although in the green, are also off their highs of overnight trade. Not to say that things cannot hold, we just need to see all of the major pairs starting to move, and that may require the European cash market momentum, from 03:00 EDT, to confirm the breaks.

The three main global equity futures markets are all heavily overbought from last week's trade, and all look as though they will require a reversal to near-term support before being able to easily move higher. Until then, we are just being cautious as to how far the major pairs can go against the Usd, while the global market drivers are all sitting at near-term overbought reads. Buying into momentum is ideal, and buying into an overbought global market is best done after at least waiting for an initial pull-back.

Markets can stay overbought for a long time, after all, a long trend can only form as a result of of overbought conditions that continue to hold that pattern, forex traders may need to see the European cash markets confirm what the futures market traders have already priced in. The Usd looks weak, however, as we have witnessed in the last two months of trade, it still has buyers in good number. We are here, we are monitoring things, and we are ready to act.