The midday U.S. session is holding equity levels in the green, after an initial drop lower to test S&P support that was set on Wednesday. The futures market globally is trading with a much more bullish nature than the cash market can follow through on. However, although the short side of the cash market looks weak it seems unable, or unwilling, to move things through support. Ahead of the NYMEX close on Thursday the equity markets in the U.S. were holding the flat line, oil was higher by 0.7% and gold was off by 1.6%.

“In the earnings season hype attention can move away from a technical outlook and turn instead towards fundamental market reviews of what is likely to come, and right now that looks to be throwing forex pairs into a loop that is hard to break” said Trade Team members.

“The four hour charts on the major pairs reveal a sideways period of trade that reflects unwillingness by market participants to fall in-line with the Federal Reserve wishes of reducing the value of the Usd. Over the last nine days most major pairs have done nothing but spun wheels and reversed attempted break-outs”.

“The pattern is for Asian and European markets to move one way, and for U.S. based futures traders to then reverse things and re-set their books as the London fixings are placed between 5-6am EDT. It is at that time forex traders are well advised to switch tack and reverse near-term directional thinking” the team said. “The NYMEX close is the next thing to get under our belt, and then, maybe, the equity markets will reveal where they really want to go”.

The dollar was holding the attempts to drop its value by the pound, cad, and aussie at bay, was forcing euro and swissy through their 100 day SMA areas, and was holding steady against the yen.