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Market Wire Update:
The markets are showing a short dollar trend, there is no doubt about that, with most global markets also reading oversold on the 4 hour charts. That creates an environment that allows room to move higher (short dollars), if the momentum starts to build and volume starts to increase. The technical set-up is ready to regain recent Usd ground, but will only do so off a technical instigator.
The U.S. provides that in spades on Wednesday with Durable Goods, expected to drop heavily from 1.8% to -0.6%, Oil Inventories, expected to increase by 0.7m barrels, and then the Federal Reserve Beige Book that will reveal the minutes from the FOMC rate meetings. All three have the ability to individually move prices, and all three on one day creates a powder keg of data that is likely to move prices.
Futures market trade has been thin, but has held support, indicating that the cash markets may be able to move higher, if these economic reads allow. The real concern is a lack of volume, without which the intra-day transitions from one global session to another become fraught with danger of heavy reversals and increased volatility.