A range-bound S&P futures market that held the initial gap lower at the start of the week, when added to a very mixed pattern of Asian and European trade, has left the forex market with no need to heavily adjust fair value on the dollar. The London Fixings set gold bullion at $913, a slight increase on Friday's close, but saw crude oil prices set at $49.20, a 4% drop from Friday's NYMEX finish. All of this has allowed currency valuations to align with the Usd in early trade, in a 'path of least resistance move. There is nothing dramatic happening on a quiet day of economics, and there are just too many near term major support and resistance areas from the daily charts in play on most of the major pairs for things to move too far without very good reason.
The U.S. futures market reaction to the London Fixings has been benign, and as such we may have to see the Wall Street cash market reaction before currencies get moving with momentum TheLFB-Forex.com Trade Tean said. If equities drop in the U.S. we will be very interested to see whether euro takes out 1.3100 and holds, if so a move to 1.3070 could happen quickly, in a test of support at the 50 day SMA area. We are monitoring the euro moves as part of our signal service they said.
There is no major pair that is not battling one daily chart Simple Moving Average area or another. Swissy looks to have a potential long 1.1500 to 1.1530 move ahead of it to test the 50 day SMA. Cable is sitting on 100 day SMA support at 1.4520, aussie is at the 20 day SMA 0.7140 area, with the cad and yen the only major pairs with a small amount of room before they too get caught in the SMA cobwebs TheLFb Team said.