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There are 19 Red Flag releases between now and close of business on Friday, and as such traders really have to look at the equity market reaction to what is coming to easily gauge a forex reaction, rather than looking directly at each currency. If stocks globally hold current valuations we may see regional currency valuations affected by the releases individually, but if stocks move hard one way or the other it is very likely that the major pairs will just continue to move as one, TheLFB Trade Team said. Higher equities = Lower Dollar, Lower Equities = Higher Dollar.
We are looking at trend-lines and waves that show completed A to D moves, and now looking for extended valuations to start to reverse, off weaker stock market trade. If equities hold at current levels we may see consolidation, but if equities move lower the Trend-line areas then come into play as possible A to B price points that set the next wave counts in place. That all equates to a reversal of dollar weakness in the near-term that traders will need to be patient with as it unfolds, the Trade Team said.