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The dollar reversal to find buyers looks to be building a little momentum, and in doing so has sent the 4 hour chart reads into a very mixed overall mode, in regard to trend and momentum. The very tight overnight trading channel is still in place, and will only get broken with a big increase in volume levels across the entire market.

The Major Pairs: The trend on the 4 hour charts has not been able to move too far from the reads that set themselves at the end of May. The initial moves higher on Monday have consolidated, and formed a tight overnight range that was unable to break, even as the European futures market order flow increased.

The consolidation may be as a result of the upcoming Bernanke testimony that will have trader desk attention in early U.S. trade, as well as the Bank of Canada rate decision to come. The trend reads are very mixed, and the momentum is holding around the neutral area; not something, when added to a mixed global driver picture, that is too inviting to be a part of. Reduced lots, and tight targets is the order of the day on the major pairs.

The Global Market Drivers: A completely mixed global market driver picture is unfolding, with some areas in long trend, while at the same time an equal amount are in short and mixed trends. The momentum reads are moving towards a neutral stance, and with such a mix of trends it seems hard to understand where the next moves are going to come from unless a infusion of speculative interest and institutional volume hit the exchange floors.

Reduced exposure is one way to overcome the situation, at least until a direction and strength read is seen that is clearer than this.