The dollar index held ground in the first full trading session of the week and managed to fend off challenges from the pound, aussie and cad. The euro was dominated by the greenback, as the dollar held ground against the swissy, with the yen being the only one to really make in-roads on Usd valuations.
“Equity markets are all dominant in the current global business cycle phase” TheLFB-Forex.com trade team members said. “We saw another session of trade that the swissy signaled that the market just does not want to be in the Usd out of choice, but with Wall Street imploding it is the safe-haven play”.
Outside of the 100+ pips (price interest points) that the JPY stole as equity markets dropped, the dollar traded with a net sum gain that sets up a great momentum play in the Asian session. “Our signal and alert focus is firmly set on how the market reacts to equities forcing trade desks to once again buy dollars” the trade team said.
“The aussie and cable look a little extended right now in the respect that they do not have market momentum backing their moves. They want to go higher, there is no technical doubt about that, but they need the dollar index to drop to allow them to access 0.7500 and 1.5000”. Any failure at these levels by any of the majors brings into play a reversal of Monday’s 200+ pip moves.