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The market gets to absorb the RBA's inner thoughts, as discussed at the latest interest rate meeting, at 21:30 EDT. The impact of these releases tends to spill over into the major pair moves, and as such we have to be aware that momentum may build across the market at that time.

We will update as the release is absorbed, and will look for aussie, cad, and swissy reaction. Add to this release, Mr Bernanke testifying on Tuesday, and the Bank of Canada interest rate decision, and we have plenty of reason to think that price action may follow in Asian and European trade.

We really need to respect a few things right now, in regard to market mechanics, and the merging of technical reads that are reflecting fundamental drivers, at a time that speculative interest is light. The stability that comes from a trend is mainly due to speculative interest balancing the flow of orders from those that have to be in the market,with those that chose to be in the market.

A speculator will pick up the other side of the trade that a manufacturer, or producer of goods, needs to offset a deliverable position some time in the future. The speculator will balance the forward cash market with the current cash swings, and will make good the hedges that are lifted and offset throughout the 24 hour trading period.

The speculator, in short, creates liquidity, and reduces volatility. In the market on Monday there has been speculative interest, coupled with a lack of institutional volume, and that allowed global markets to break and hold. The Japanese anchor was missing overnight, because of the bank holiday, and as such the speculative interest managed to push prices a little further than would be the norm.

That is fine, so long as we understand that market mechanics may just have to pull things back to support, test the speculative interest, pick up the stragglers, and then make the moves back up towards the highs set on Monday.

Bottom line; the overbought near-term reads will struggle to break new ground unless the speculative interest starts to draw in institutional volume. The 4 hour charts have still not committed to a trend as yet, on the equity, commodity, and forex, reads and as such, right now, the markets do have the ability to drop lower, bounce, and take the current areas out that were set in trade on Monday.