The week finished with a whimper rather than a bang in regard to forex valuations, and wrapped up a period of trade that shows the major pair weekly charts running in very tightly defined channels. The Asian session this week found its footing and produced some signals that there may be more activity coning in to that trading time-frame than has been seen over the last six months. The aussie is starting to catch bids in that time-frame, and needs to be viewed as the pair that may break ahead of the majors at that time.

The European session is dominating activity in regard to price movement and momentum, but is being tempered a little by the U.S. futures reversal that is coming around 07:00 EST each day. That then leads into a full blown session of Wall Street trade that has no momentum, to the greater degree. The dominance of S&P Futures trade is very evident outside of the Wall Street cash market, and as such the Usd will keep the major pairs in a tight grip if global equity markets are unable to find buyers.

Forex trading channels are getting tight, and on all time-frames there are very few sustainable looking break-outs that are able to hold from one session to another. That pattern of trade is however is building cause and effect that over time will lead to explosive break-outs that have price action and volume accompanying them. It may not be too long before the fundamentals start to play their part, and next week has enough economic data in it to justifiably say that it may lead to some near-term support and resistance areas getting tested, and possibly broken.

The weekend brings the bluff and bluster of the G7 meeting of global economic leaders, and with it the hope that a positive message of unity can be produced. If so the equity markets may have a key to start the move out of the bear trap in the near-term, and into the next channel higher on the S&P that uses 850 as a support area. Higher equities equate to a test of the dollar buyers resolve.