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Market Wire Update: 06:15 EDT
The the 4 hour charts have not been able to move too far from the reads that set themselves at the end of May. The trends are still mixed, and the momentum is holding around the neutral area on most pairs. The moves to set a foundation that can now sell the Usd from is in place. However, most pairs have not yet reached the previous session high/low areas, and as such are using momentum and price action right now that may then weaken their attempts to break those resistance areas.
We are starting to see a regional economic story build, and would now expect a move away from the daily grind that has been in place for eight weeks of following S&P futures trade each day. The global drivers of the Usd (equity, commodity, and Treasury markets) are building into a solid long mode that will soon have the Usd under extreme pressure to drop in value.
The set-up happened slowly, over the course of the week, and now may just run out of time before being able to make the next leg higher. The reason is, being at such overbought conditions on the last trading day of the week, may not allow enough time for each to pull back a little, find support, and then move again.
We are seeinga swing towards interest rates, forward growth, and debt ratios impact currency pair valuations, and seeing a swing away from the credit crisis induced tracking of the S&P futures market each day. That will allow trends to form, and technical reads to get themselves back to showing consistent patterns that hold for more than one or two sessions in a row. The major pairs have been in a range since May 21 09; this may be what breaks that trading mold.